He said: “I think it’s tackling the wrong end of the problem. I don’t think there’s a shortage of capital for house-building, I think there’s a shortage of planning permissions.
“This is putting the cart before the horse. If you have £50 billion available to spend on housing but you’ve got a planning system which is completely gummed up and doesn’t work and isn’t delivering the numbers.
“Just putting more money into it will simply inflate the price of land, it won’t actually be the solution, so you’ve got to clear up the planning system first.”