Sajid Javid. Image: Getty.
Show Hide image

The housing white paper is a damp squib - because the government is afraid of Middle England

Don't frighten the horses.

The housing white paper, communities secretary Sajid Javid said in his speech to the Commons, is a “bold, radical vision” which will “meet our obligation to build many more houses, of the type people want to live in, and [in] the places they want to live”. That sounds great – so you’d imagine it’d be getting a fair number of plaudits from the wonkosphere, right?

“Government must go further to tackle the housing crisis,” was the IPPR’s response from the left. “A missed opportunity,” replied the Adam Smith Institute from the right.

And those were just think tanks. The specialist housing campaigners were even less appreciative. “White Paper leaves most renters without long term homes”, said Generation Rent. “What we need now is quick and bold action that helps people in need of a decent home tomorrow not in ten years,” concluded Shelter. PricedOut put it more simply: “The government has bottled it.”

Even Grant Shapps – the same Grant Shapps who, as Tory housing minister, who used to get booed at housing conferences – was scathing. “Housing ministers over the years have come out with documents or bills, and the truth is none of them are going to make much difference,” he said. “And I don’t suppose this will make that much difference either.”

So, that’s all good.

Where did it all go wrong? The housing white paper, after all, measures that are, if not the bold, radical vision Javid promised us, certainly steps in the right direction. It contains rather a lot of them, in fact: Letting Agent Today (yes) published a story under the headline, “Here are all 29 key points in the Housing White Paper”, which gives you some sense of quite how difficult this thing is to summarise. Here are some of the bigger ones.

Firstly, there’s the “build, build, build” stuff. The white paper acknowledges that successive governments have failed to get Britain building enough (duh), and attempts to correct this. That means forcing councils to produce more realistic housing plans for their areas, which is new, and promising to release public land for new housing, which isn’t.

It also wants to put more pressure on housebuilders to get on with the job. It’ll use a £3bn fund to encourage smaller firms back into the market, in an effort to increase competition. It’ll also slash the maximum time developers can sit on a site with planning permission without building anything, from three years to two, in an attempt to prevent land-banking. Those are the sticks: the carrot is a streamlined planning process, which will, among other things, make it easier to add extra storeys to increase density in urban areas.

Lastly, there are a few crumbs for renters. It’ll encourage the development of new private rental housing with longer, more secure tenancies, backed by institutional investors. (Unlike individual buy-to-let landlords, pension funds are unlikely to refuse to replace a broken boiler, say, on the grounds that they can’t afford it.) It’ll also ban letting agent fees. And it’ll introduce banning orders, to force the worst landlords and agents out of the market.

Al these things are, if not revolutionary, at least good. They will help, a bit. The same cannot be said of many of the Cameron-era interventions, notably Help to Buy.

So why the widespread gnashing of teeth? The explanations seem to lie in the things that aren’t in the white paper.

Take the stuff about councils. Getting them to plan for more houses is all very well – many, especially in leafy Tory areas like Bromley, have behaved in a way that suggests they think the housing crisis was something that just happened to other people. But it’s not clear that, seven years into austerity, councils have the sort of resources or expertise in their planning department to do this.

It’s also weirdly mis-targeted. Councils don’t build housing: housebuilders do. Councils can plan all they want, but they can’t force private firms to build. And there is nothing in the white paper to help either councils or housing associations start building at scale – which is a shame, because they’d like to and are less motivated than private firms to keep house prices high at all costs.

The tenants’ rights stuff is a damp squib, too. The longer contracts will only apply to new, “build to rent” homes, and the investors who own them will likely want long-term tenants anyway simply because they’re a better investment: the government intervention may be unnecessary.

What’s more, those homes won’t appear for years, and will probably favour richer tenants when they eventually do. So the vast, vast majority of Britain’s renters, stuck in existing homes with smaller-scale landlords, still have no access to a secure home on the horizon. As Graeme Brown, the interim chief executive of Shelter, said in a statement: “What we need now is quick and bold action that helps people in need of a decent home tomorrow not in ten years.”

But the biggest gap in the white paper, the thing that’ll render all the good stuff in there almost meaningless, is – stop me if you’ve heard this one before – land. The reason we aren’t building enough homes is because – in the cities where demand is highest – restrictions like the green belt mean we don’t have enough places to put them. We either need to build out (so rethink the green belt); or we need to build up (which means knocking a bunch of stuff down and starting again). Physically, these things are easy to do; politically they aren’t.

And this white paper makes no attempt. It promises to protect the green belt, despite the fact that chunks of it aren’t green and are nestled right up against transport links. It bangs on, as government housing policies always have, about making use of brownfield and densification.

Well, those are the things we do now. They haven’t worked. Brownfield-first strategies are more complex, so take longer. They also cost more, since they often mean clearing occupied, contaminated or otherwise difficult sites. All this is possible – but it will take a concerted government effort and probably quite a lot of money. There is a reason that, of the two big east London regeneration sites, Stratford, which hosted the Olympics, has happened and Barking Riverside didn’t and hasn’t.

All these things can be fixed. A government that really wanted to take a radical approach to housing could say to landlords that tenant security was more important so, sorry, they were going to lose a few rights. It could be honest about the fact that this crisis wasn’t going to be solved through platitudes about brownfield, that the green belt needed review, and that a few golf courses and bits of framland was a small price to pay to build the homes we needed. The government didn’t have the guts to do any of those things.

It’s tempting to blame Javid for this failure, but I suspect the real culprit lies further up the chain of command. Theresa May, whatever her other qualities, understands the middle England electorate in constituencies like her own Maidenhead. They are precisely the people who want to protect green belt at all costs, who use buy-to-let property to supplement their incomes, and who definitely don’t want their house prices to fall. This white paper does absolutely nothing to threaten their privileges.

It won’t solve the housing crisis. It won’t even come close. But it’s likely that it’s done its job nonetheless.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. You can find him on Twitter or Facebook.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
Show Hide image

Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

0800 7318496