Last night saw the launch event for the latest Compass publication Don't bet the house on it: No turning back to housing boom and bust which will be officially released next week. A packed out committee room discussed the future of housing policy with echoing calls for us to go back to basic principles: making a house a place to live in, a home.

Toby Lloyd, author of the forthcoming report kicked of proceedings with the recognition that this economic crisis, like those in the past, will need the left to step in and save the market from itself and to protect society from the market. Housing wealth now represents £4 trillion, and is the biggest aspect of our economy; it is the biggest individual debt and is the biggest element of the crisis. Housing is also the locus where the abstract world of financial trading and derivatives interact with real life, homes and jobs.

Our solution cannot be to turn back the clock - as even before the collapse the housing market as it stood had profoundly damaging social and economic consequences. Toby then focused on two specific areas: supply and prices. He argued that for a generation we have not built enough houses and the situation is only going to get worse with current building rates meaning each house built today would need to last 1200 years. He then turned his attention to the interrelated issue of prices arguing that the model of house building currently in place which called for ever rising house prices is no longer sustainable. He concluded with calls for a fundamental rethink of housing policy - details of which can be found in the forthcoming report.

Heather Wakefield from Unison followed, stating that Unison welcomed the contribution this document would make to the debate on housing. She argued that this is the time for a fundamental rethink of housing policy, the housing market is in a dramatic state of flux and the economic crisis has meant people are questioning the dependence on the market. Something must be done.

Adam Sampson, chief executive of Shelter, stated that debate is now essential. While the government seems to want to return to the status quo of before the crash, and much of the political community seems wedded to the old model of housing we need a fresh and challenging debate to seize the current opportunity. The result of not doing this will ensure the cycle worsens. He called for attention on two key areas. First, finance supply - arguing a new model is needed. Second, homeownership - calling for a discussion on where and how people live and an assessment of what housing should look like. Finally calling for tenure equality and tenure neutrality.

Nicky Gavron AM, drew focus to the issues surrounding London and argued that the actions Boris was currently taking demonstrate the direction of policy an incoming Conservative Government would take and the disastrous impact this would have on housing supply.

Frances O'Grady, deputy general secretary of the TUC, welcomed Alistair Darling's promise of £1billion for a housing market rescue package, but only as a down payment. She called for greater investment and regulation of the construction industry. The industry must clean up its act - create real jobs, with fair employment, end black listing and ensure health and safety regulations were met.

Jon Cruddas MP, who's deputy leadership campaign put housing policy back on the map, stated that this document marked a turning point. Jon quoted Gramsci stating that we are in an interim period where "the old is dying and the new cannot be born; in this interregnum a great variety of morbid symptoms appears". But that more importantly sub-prime didn't fall out of the sky - it was created to keep the music playing. This disaster has been building for a generation - the rationing in supply, the withdrawing of the state, the freeing of financial markets and the ever increasing demand were only ever heading in one direction. Minor tinkering at the edges will not be enough we need major reform, major change and this requires huge political will.

The Compass report will be published on this website next week.