Premier Dr. Ewart Brown recently stated that the Island's housing situation had moved from a "crisis" to a "serious" condition under the Progressive Labour Party's tenure.

That was probably cold comfort to the Club Med squatters (those who were not being accused of taking advantage of the situation by Dr. Brown) and all of the other people who are in desperate need of improved and affordable housing. And to be fair to the PLP, it has moved on the issue in this term after its shameful neglect until 2003 of the very issue that helped to propel it to power in 1998.

It claims to have provided homes to 800 Bermudians through the Bermuda Housing Corporation and is on its way to completing 21 of 96 affordable housing units at Loughlands along with 50 at Perimeter Lane and Butterfield Lane. In addition, 100 seniors have been housed at the Rockaway seniors' residence.

In all, the PLP is promising to build 550 homes, including the above projects, although in some cases, the new homes replace existing units. The other two major planks of the PLP platform include widening its rent geared to 25 percent of income plan and adding a savings incentive and offering 500 first time homeowners interest free mortgages.

The United Bermuda Party's platform covers some of the same ground, but seems to propose more incentives for private developers to build affordable housing, while acknowledging that Government has the primary responsibility in this area.

Where the PLP promises to build 550 homes including those already built, the UBP promises 550 new homes.

It also detailed plans yesterday to develop a scheme to provide means-tested first time buyers with mortgages to buy $400,000 homes for less than $2,500 a month without a down payment. It also proposes a new emergency housing facility, and working with financial institutions on rent-to-buy schemes.

It would also relax Planning rules to encourage cluster developments of multiple units in high density areas and modular building methods to deliver low-cost housing in the $350,000 to $450,000 range.

Both parties offer duty relief to developers on materials to build low cost homes,

Perhaps most importantly, the UBP promises a national housing plan to examine what is a complex problem in detail and to put an end to the recurrent housing crises with which the Island has grappled.

There is some risk with both parties' platforms that providing low cost mortgages or no interest down payments will drive up housing prices as more credit becomes available.

This, like rent control, does not tackle the core problem with housing, which is not a lack of liquidity in the local market but the lack of supply. Solving the housing problem ultimately means building more homes and thus satisfying demand, which in turn would slow or freeze rising prices.

Here, the UBP's proposal to liberalise height levels in Hamilton for apartment buildings, along with its promise to require housing developers to include an affordable segment may be the best long term solution to the problem, with the added advantage that it will not eat up more of what little open space Bermuda has left.

• Due to the Editor's failing memory, an editorial in Wednesday's newspaper incorrectly stated that the payroll tax cut proposed by the United Bermuda Party would reduce revenue by $40 million. The correct figure is around $25 million.