Governments across the world are taking a far more interventionist role in housing delivery as affordability pressures expose the limits of private sector-led supply, new research from The University of Manchester has found.
The study, spanning cities including Salford, Shanghai, Paris and Nairobi, points to a clear shift in housing policy, with states increasingly using new financial tools, land strategies and delivery models to drive affordable housing provision.
For UK agents, the findings reinforce a growing trend already visible through the rollout of the Renters’ Rights Act and wider regulatory changes – namely, a move towards greater state involvement in housing markets.
The research suggests this is not a short-term response but part of a structural shift as governments seek to rebalance markets that have struggled to deliver affordable homes at scale.
AFFORDABILITY PRESSURES
Across both developed and emerging markets, policymakers are deploying a mix of public-private partnerships, land value capture and state-backed finance to increase supply and manage affordability pressures.
Dr Tom Gillespie (main picture, inset), Researcher at The University of Manchester, says: “Our research shows that states are once again becoming central players in efforts to tackle the global affordable housing crisis, but this isn’t a simple return to old models of public housing.
“Instead, we are seeing a wide range of new approaches emerging as governments try to balance social needs with the realities of financialised urban development.
“By comparing these six cities, we hope to offer a framework that helps researchers and policymakers understand how state action is changing – and how it might better support access to decent, affordable homes.”
GOVERNMENT INTERVENTION
The report highlights Salford as a standout UK example of local intervention. The council has redirected developer contributions into a council-owned housing company, delivering homes at below-market “Salford rents” while shielding stock from Right to Buy.
In contrast, Shanghai demonstrates how large-scale state control of land and development can be used to deliver subsidised housing, shared ownership schemes and regeneration programmes aimed at stabilising affordability.
Despite differing approaches, the common thread is clear: governments are stepping in where private markets alone have failed to meet demand.
For agents and developers, the direction of travel is significant. Increased state involvement is likely to reshape planning frameworks, funding models and partnership structures, while also influencing pricing dynamics across both sales and lettings.
The study suggests that as affordability pressures intensify, further intervention is likely—marking a decisive shift away from the light-touch, market-led housing model that has dominated for decades.
