A windfall tax on monster basements could solve London’s housing problem

The mega-rich are best housed behind high fences, on wooded estates patrolled by dogs; that way, they don’t have to annoy the rest of us. But I can see how irritating it must be, if you live in the crowded Ladbroke Grove area of west London, to have a neighbour like Reade Griffith, an American hedge-fund manager who has received planning permission for a vast basement extension to his house that will take many months to excavate. Fellow residents of Kensington and Chelsea, other than those wealthy enough to have similar schemes in mind, will probably think it serves him right that he has been charged an £825,000 ‘Section 106’ levy (a device usually applied to large commercial developments) to contribute to ‘affordable housing’ developments in the royal borough. Indeed — leaving any whiff of envy aside — his story may contain the germ of a solution to Britain’s growing shortage of cheaper homes for working people.