Showing posts with label issue 423. Show all posts
Showing posts with label issue 423. Show all posts

Monday, 15 May 2017

General Election 2017 - Housing: There is a progressive consensus that Britain needs more homes and more protection for renters

The future of housing in Britain is a key issue, for which the main parties rarely have a convincing answer.
It is not an overstatement to say that housing is in crisis in Britain. The housing and homelessness charity Shelter are stern in their assessment of a Britain that is short on affordable housing and facing the rise in precariousness and powerlessness that follows.

The Conservative approach to the crisis has been half-measures and pointed fingers. Despite the facts not agreeing with them, the Tory government has insisted it has built more houses than Labour - placing the present problems at their opponents feet.

Meanwhile their own response has amounted to mostly shoring up their own supporters. Disproportionately to the disadvantage of the least well off, the Tories have raided the public sector- councils and housing association - for more homes to prop up a housing market reluctant to build.

The Conservatives continue to make promises. In the Autumn, as they acknowledged they have failed to meet targets, Chancellor Philip Hammond and Sajid Javid announced plans for a mix of funds and loans to get back on target.

Theresa May has announced, during the current campaign, that new land will be made available for Councils to build social housing - though, they'll still be sold off after ten to fifteen years. And the plan isn't new, just a re-announcement of previous spending commitments.

It is painfully unclear that Conservative plans will not do much of anything to affect the fundamental problems.

What is clear is that there is a progressive consensus to be found on housing. Across the Left and Centre, there is a realisation that - at the raw heart of the matter - more homes need to be built. There is no escaping from that reality.

The Labour response has been to pledge a million new homes over five years. The plan accounts for half of those to be council and housing association homes, to be made available for affordable rents. The pledge was accompanied by a commitment to ensuring more secure tenancies and end bad letting practices.

The Liberal Democrats by comparison have pitched for 300,000 new homes a year across the next parliament. As is becoming more common, they have combined this with a plan to allow councils to levy penalty fees on absentee landlords with empty homes - up to 200% of council tax.

This theme of building homes, tackling bad landlording and taking on the problem of empty homes is also present in the Green Party's policy announcements. Their proposals pretty much match Labour's step for step and include the Lib Dems focus on bringing empty homes back into use.

However, what no party has offered is a concrete means of dealing with the fundamental problem: a 259% rise in house prices over just twenty years. The standard response has been simply to increase the sheer number of houses - hoping that increasing market supply alone will drive down prices.

Certainly, making rental more secure, longer termed and protected from bad practices - like hiked rents or exorbitant fees - more widely available will go some way to providing viable alternatives to home ownership, that will increase competitive pressure.

But at some point, some party or movement will have to address the fundamental roadblock to housing reform in Britain: the interests of homeowners, landlords, developers and the government being so closely aligned and deeply invested in the continued increase in property values as to form a cartel.

This problem goes deep into the heart of Britain's economic system and find there problems that are supposed to be extinct.

The rentier - the magnate who makes their unearned income from rent - is seen as an issue of the early twentieth and even nineteenth century, but remains a problem in modern Britain.

It was one of the things that originally led liberals to coalesce into a party to fight: the power of aristocratic landlords who maintained their wealth and privilege on the back of the work of others. Their answer was to fight for earned income to replace rent income.

Yet conservatism adapted and capitalism has kept alive at its core a rentier class, that finds disproportionate advantage. The continued prevalence of inherited wealth and the huge privilege afforded to wealth, allows a class to virtually exclude others from access to one of the most basic needs: shelter.

Addressing the grip of this cartel just simply isn't in the interest of a government - not least conservatives. In Britain, so much has been staked on 'financialisation' and that investment speculation is deeply entwined with property.

But what is the answer? The strong or expansive economies of countries like Germany and Singapore both have huge public ownership of land and housing and in the last twenty years have not seen prices rise like they have amidst Britain's private finance and privatisation boom.

The progressive parties are all putting forward plans that will be an improvement upon Conservative policy and there is real and meaningful overlap in their ideas. They recognise that Britain needs more decent affordable homes and renters need protection. That alone is enough to vote for progressive parties on the issue of housing, over Tories that raid social housing to feed an out of control market.

But the big answers on housing have yet to make their way into the party mainstream in Britain.