AT FIRST glance London looks unstoppable. It is the most important city in Europe, perhaps the world. In the past decade its economy has grown twice as fast as Britain’s and its population 50% faster. Scratch the surface, however, and its situation looks less good. The motor of the British economy is becoming less productive and more unequal. The fundamental problem is how land is used and regulated.
Over the last full economic cycle, from 1993 to 2008, the cost of a hectare of residential land in London increased by more than 300% in real terms, to more than £8m ($15m).