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The dream of home ownership for all is over. Even the Tories recognise this The dream of home ownership for all is over. Even the Tories recognise this
(35 minutes later)
Theresa May may do her best with her practised, joyless impersonation of Margaret Thatcher, but with this week’s housing white paper her government is acknowledging that part of the Thatcher dream has died. It has been dead for a long time . While David Cameron was still advancing the idea of a “home-owning democracy” in the 2015 Conservative general election manifesto, the reality is that buying a home of one’s own has become completely out of reach for more and more people. The white paper will attempt to make things fairer for renters. Sajid Javid, the communities secretary, has said this is about making housing more affordable and giving people more choice and security in what he called “this broken housing market”. Theresa May may do her best with her practised, joyless impersonation of Margaret Thatcher, but with this week’s housing white paper her government is acknowledging that part of the Thatcher dream has died. It has been dead for a long time. While David Cameron was still advancing the idea of a “home-owning democracy” in the 2015 Conservative general election manifesto, the reality is that buying a home of one’s own has become completely out of reach for more and more people. The white paper will attempt to make things fairer for renters. Sajid Javid, the communities secretary, has said this is about making housing more affordable and giving people more choice and security in what he called “this broken housing market”.
The announcement is significant because it is an admission that left to the market, with no intervention, we end up in crisis. In housing, we have ended up with what we merrily call “generation rent”. We also end up with favela-type housing on the edges of the capital – people living in garages, sheds, in homes of multiple occupation, in abysmal conditions. Families are living with no security and the number of rough sleepers has doubled. At the same time, we have people in London with £2m houses complaining about a slowdown in property prices. The announcement is significant because it is an admission that left to the market, with no intervention, we end up in crisis. In housing, we have ended up with what we merrily call “generation rent”. We also end up with favela-type housing on the edges of the capital – people living in garages, sheds, in homes of multiple occupation, in abysmal conditions. Families are living with no security and the number of rough sleepers has doubled since 2010. At the same time, we have people in London with £2m houses complaining about a slowdown in property prices.
It is now a fact of life that many people under 40 will be permanently locked out of the housing market, as prices are way beyond even combined salaries. The central myth of “if you work hard enough you can have a home of your own” is dead on its feet. It is no good simply talking about “aspiration” – that much-haggled over quality – if the market in jobs and wages cannot provide any means to make that aspiration real. The Tories’ totemic policy since the Housing Act of 1980 has been the selling off of social housing to individuals. Since they destroyed the very notion of social housing, those low-cost homes have never been rebuilt, and there has never been any real incentive for the market to do so either. Every single politician talks about building affordable homes. But this has not happened.It is now a fact of life that many people under 40 will be permanently locked out of the housing market, as prices are way beyond even combined salaries. The central myth of “if you work hard enough you can have a home of your own” is dead on its feet. It is no good simply talking about “aspiration” – that much-haggled over quality – if the market in jobs and wages cannot provide any means to make that aspiration real. The Tories’ totemic policy since the Housing Act of 1980 has been the selling off of social housing to individuals. Since they destroyed the very notion of social housing, those low-cost homes have never been rebuilt, and there has never been any real incentive for the market to do so either. Every single politician talks about building affordable homes. But this has not happened.
Housing remains absolutely the key issue and the failure of housing policy is one of the reasons social mobility has ground to a halt. Unless your parents own property, it is unlikely that you will. If half of people’s wage packets are going on rent, as the government now says, how are they to save for a deposit?Housing remains absolutely the key issue and the failure of housing policy is one of the reasons social mobility has ground to a halt. Unless your parents own property, it is unlikely that you will. If half of people’s wage packets are going on rent, as the government now says, how are they to save for a deposit?
There has been a sharp drop in the number of young adults owning homes, and the truth is that many people will only ever rent the buildings they live in. The Tories appear to have accepted this, and realised that they need to lock in the votes of renters, until now one of the least likely groups of people to vote for them. Yet they do not want to upset their existing voters, who do not want new homes built in the greenbelt.There has been a sharp drop in the number of young adults owning homes, and the truth is that many people will only ever rent the buildings they live in. The Tories appear to have accepted this, and realised that they need to lock in the votes of renters, until now one of the least likely groups of people to vote for them. Yet they do not want to upset their existing voters, who do not want new homes built in the greenbelt.
This is why they want to free up existing properties and incentivise older people to move out of bigger family homes, possibly into sheltered accommodation. The elderly, it seems, are not only blocking up hospitals but also the housing supply chain … by, you know, living,This is why they want to free up existing properties and incentivise older people to move out of bigger family homes, possibly into sheltered accommodation. The elderly, it seems, are not only blocking up hospitals but also the housing supply chain … by, you know, living,
But if the Tories’ change of tone is to signal that they are the party for renters as well as home owners, it is also an acknowledgment of the absolute failure under Cameron to build more homes, or to address the vast inequalities the housing market is now producing . In the past, Tory MPs have consistently voted down efforts to ensure protection for renters. Are they really going to change?But if the Tories’ change of tone is to signal that they are the party for renters as well as home owners, it is also an acknowledgment of the absolute failure under Cameron to build more homes, or to address the vast inequalities the housing market is now producing . In the past, Tory MPs have consistently voted down efforts to ensure protection for renters. Are they really going to change?
Home ownership is now the dividing line generationally and geographically, with average homes in London costing almost £500,000, more than double the national average, even after last year’s slowdown. While houses in the south-east are now increasingly functioning as pension pots, we have created a situation where huge numbers of people are now locked out of any real vision of long-term financial security.Home ownership is now the dividing line generationally and geographically, with average homes in London costing almost £500,000, more than double the national average, even after last year’s slowdown. While houses in the south-east are now increasingly functioning as pension pots, we have created a situation where huge numbers of people are now locked out of any real vision of long-term financial security.
If home ownership were the way to give people a stake in society, increasing numbers have no stake at all. The fact that even the Tories recognise this shows just how bad things have become. The dream has died.If home ownership were the way to give people a stake in society, increasing numbers have no stake at all. The fact that even the Tories recognise this shows just how bad things have become. The dream has died.