Housing poverty is "the most extreme form of social inequality in Britain" according to a report published on Wednesday by the IPPR.

The influential think tank called for dramatic changes to increase choice and close the housing "

The report also calls for a raft of new taxes on homeowners in a bid to close the gap between property hotspots and poorer areas.

A spokesman for the ODPM told ePolitix.com: "We have looked closely at the IPPR's contribution to what we consider to be a critically important issue.

However, many of the points raised have already been addressed by the deputy prime minister's £22 billion sustainable communities plan launched last year."

Forum Response: British Property Federation

Anna Ring, policy officer at the BPF, told ePolitix.com: "This report raises some important issues about the need for investment in the private rented sector and the role it could play in satisfying some of the nation's housing needs. The BPF believes that significant investment could flow into the private rented sector if the appropriate incentives were in place, for example, a tax efficient investment vehicle. Encouraging this investment would lead to the expansion of good quality, affordable accommodation to rent, and would go some way to addressing the problem of a shortage in housing supply.

"The report also comments on the government's communities plan targets for housing and the need for this to be integrated into the wider strategies for economic development.

"The BPF agrees that the government's plans for house-building in the south east will need to be backed up by transport and other infrastructure projects for the new communities envisaged to be viable and to attract the private investment they need.

"However, we would be cautious about some of the fiscal measures proposed in the report, such as using stamp duty to regulate the levels of house purchases and sales. This would create distortions and act as a deterrent to further house-building and investment, which the sector desperately needs."

Forum Response: Country Land and Business Association

Sir Edward Greenwell, president of the CLA, said: "The equity released from home ownership underpins personal spending and supports local businesses, particularly in rural areas. Undermining this would have a powerful negative impact on the economy and would penalise the increasing number of people forced to use their property to fund their pension.

"Creating higher value bands of council tax in rural areas would be another blow for those already suffering from reduced services compared with their urban counterparts. Moreover, owners of listed buildings would be burdened with yet more costs on top of those already required to meet statutory obligations on their homes. A large proportion of listed buildings are situated in the countryside and aren't necessarily owned by wealthy people.

Nick Way, director of policy at the CLA, also said: "The most pressing problem in rural areas is that there is not enough suitable housing at all levels of the market. We need more mixed housing spread throughout the countryside."

Forum Response: Shelter

A spokesman for Shelter told ePolitix.com: "IPPR's report into housing inequality raises some extremely important issues and Shelter welcomes the chance for debate on them.

"For too long government did not see housing as a priority, which has contributed to the serious shortage of homes we see today. We have record numbers of homeless people - over 85,000 households - stuck in often totally inappropriate temporary accommodation and thousands more for whom a decent home is completely out of reach.

"We must have more investment in affordable homes made available where they are needed. The planning system, too long hijacked by nymbyism, must be reformed to ensure these homes are delivered.

"It is also vital that the government work to increase investment and standards within the private rented sector so that it can play the significant role in providing the decent homes that it should."