Housing remains a problem for many world governments and the temporary policies in place are draining public purses and endangering global macroeconomic stability, the Tony Blair Institute for Global Change has said in report.

Tony Blair explained: “[The report] proposes five new policy ideas, which together would mean a bold and ambitious agenda to solve our housing crisis; and in doing so, resolve part of the underlying causes of political alienation and dissatisfaction with democracy.”

Home Truths: a progressive vision of housing policy in the 21st century recommended a community reinvestment programme based on a land value tax and a sovereign property fund that expands public housing investment.

The report stated that by keeping rent at affordable levels, public authorities could directly address the affordability crisis that has lowered living standards across the OECD.

As of 2014, over 60% of OECD countries were experiencing real house price inflation, the report highlighted.

It said that the crisis is “sweeping through cities across the West”, contributing to a decline in living standards and a rise in wealth inequality.