This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/society/2017/oct/04/how-did-the-crisis-in-uk-social-housing-happen
The article has changed 7 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| How did the crisis in UK social housing happen? | How did the crisis in UK social housing happen? |
| (about 5 hours later) | |
| Theresa May unveiled a £2bn boost for housebuilding, seen as crucial to Tory efforts to capture the votes of younger people | |
| Matthew Weaver | |
| Wed 4 Oct 2017 12.32 BST | |
| Last modified on Thu 5 Oct 2017 13.36 BST | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| View more sharing options | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Close | |
| The pre-publicity for Theresa May’s speech to Tory conference sought to portray her as the first Tory prime minister since Harold Macmillan to announce a major social housing building programme. In reality, the £2bn figure announced by the prime minister fell some way short, translating, it was later briefed, into about 5,000 new homes a year. | The pre-publicity for Theresa May’s speech to Tory conference sought to portray her as the first Tory prime minister since Harold Macmillan to announce a major social housing building programme. In reality, the £2bn figure announced by the prime minister fell some way short, translating, it was later briefed, into about 5,000 new homes a year. |
| The number of new council homes per year peaked at well over 200,000 in the early 1950s under the Conservatives, thanks in large part to a programme started by the 1945 Labour government. | The number of new council homes per year peaked at well over 200,000 in the early 1950s under the Conservatives, thanks in large part to a programme started by the 1945 Labour government. |
| Private housebuilding overtook the number of homes built by councils in the 1960s – while in recent years the overall number of new homes built has dropped below the 200,000 a year level that is widely believed to be necessary to keep up with population growth. | Private housebuilding overtook the number of homes built by councils in the 1960s – while in recent years the overall number of new homes built has dropped below the 200,000 a year level that is widely believed to be necessary to keep up with population growth. |
| Tackling the housing crisis is seen as crucial to capturing the votes of younger people priced out of home ownership in many areas. As May admitted in her conference speech: “For 30 or 40 years we simply have not built enough homes. As a result, prices have risen so much that the average home now costs almost eight times average earnings. That’s been a disaster for young people in particular. We have begun to put this right ... but the election result showed us this is not nearly enough.” | Tackling the housing crisis is seen as crucial to capturing the votes of younger people priced out of home ownership in many areas. As May admitted in her conference speech: “For 30 or 40 years we simply have not built enough homes. As a result, prices have risen so much that the average home now costs almost eight times average earnings. That’s been a disaster for young people in particular. We have begun to put this right ... but the election result showed us this is not nearly enough.” |
| Angry young voters helped explain the 2017 election upset. Labour outpolled the Conservatives in every age group below 50 in an election that marked a sharp generational divide. The younger you are, the more likely you were to vote Labour in June. | Angry young voters helped explain the 2017 election upset. Labour outpolled the Conservatives in every age group below 50 in an election that marked a sharp generational divide. The younger you are, the more likely you were to vote Labour in June. |
| Construction of affordable homes from housing associations and private developers is running at only 40,000. This is well below levels of more than 50,000 seen in 2011 and 2012, when the for-sale market slumped and housing associations acquired homes that housebuilders were unable to sell. | Construction of affordable homes from housing associations and private developers is running at only 40,000. This is well below levels of more than 50,000 seen in 2011 and 2012, when the for-sale market slumped and housing associations acquired homes that housebuilders were unable to sell. |
| May pledged an extra £2bn to put “government back in the business of building new houses”. But officials admitted that the money would pay for only an extra 25,000 homes. | May pledged an extra £2bn to put “government back in the business of building new houses”. But officials admitted that the money would pay for only an extra 25,000 homes. |
| Such low levels of affordable new homes means that many young people are priced out of housing, particularly in London and the south-east. Only a fifth of households can afford to buy the average new home in the south-east of England, according to research from Savills. All areas of London have a house price to earnings ratio of more than 10:1; the average across England is 7:1. | Such low levels of affordable new homes means that many young people are priced out of housing, particularly in London and the south-east. Only a fifth of households can afford to buy the average new home in the south-east of England, according to research from Savills. All areas of London have a house price to earnings ratio of more than 10:1; the average across England is 7:1. |
| By the 1990s, rules banning councils from borrowing money put an end to council house building. The provision of new social housing was left to housing associations that, as independent landlords, are allowed to borrow private finance. | By the 1990s, rules banning councils from borrowing money put an end to council house building. The provision of new social housing was left to housing associations that, as independent landlords, are allowed to borrow private finance. |
| Margaret Thatcher’s decision to allow council tenants the right to buy their homes at a discount fuelled a sharp rise in home ownership. Ownership levels peaked at 71% in 2003 in England and have since slipped back to 64%, their lowest level since 1987. | Margaret Thatcher’s decision to allow council tenants the right to buy their homes at a discount fuelled a sharp rise in home ownership. Ownership levels peaked at 71% in 2003 in England and have since slipped back to 64%, their lowest level since 1987. |
| Research by the Resolution Foundation thinktank found that today’s 30-year-olds are only half as likely to own their own home as their baby-boomer parents. | Research by the Resolution Foundation thinktank found that today’s 30-year-olds are only half as likely to own their own home as their baby-boomer parents. |
| Thirty-year-olds are also four times as likely to rent privately than two generations ago, a sector that has the worst record for housing quality. | Thirty-year-olds are also four times as likely to rent privately than two generations ago, a sector that has the worst record for housing quality. |
| The generation aged 18-36 is typically spending more than a third of their post-tax income on rent or about 12% on mortgages, compared with 5-10% of income spent by their grandparents in the 60s and 70s. | The generation aged 18-36 is typically spending more than a third of their post-tax income on rent or about 12% on mortgages, compared with 5-10% of income spent by their grandparents in the 60s and 70s. |
| Yet despite spending more, young people are more likely to live in overcrowded and smaller spaces, and face longer journeys to work – commuting for the equivalent of three days a year more than their parents. | Yet despite spending more, young people are more likely to live in overcrowded and smaller spaces, and face longer journeys to work – commuting for the equivalent of three days a year more than their parents. |
| Social housing | |
| Communities | |
| Housing | |
| Theresa May | |
| Conservative conference 2017 | |
| Conservatives | |
| explainers | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Reuse this content |