Rich homeowners, poor renters, and so they shall stay

Government policy is on a collision course with itself.

The reason for Britain's chronic housing problem is that the rent is too damn high.

Not just the rent, of course. House prices are too damn high as well, and that leads to the housing benefit bill being too damn high and even the cost of commuting being too damn high.

We know how to reduce rent and house prices, as well. It doesn't take instituting rent controls (a very dangerous proposal, which has the potential to do more damage to the nation's housing stock than the sell-off of council houses ever did), nor does it take changing the legal background to renting to allow tenants to "lock in" to lower rates with long-term contracts. It's a very simple case of supply and demand. The rent is too damn high because supply is too damn low. The solution to our housing problem is as simple as sprinkling abodes liberally across the nation.

The problem is that no one with the power to do so actually wants to reduce the cost of housing. For the 66 per cent of the country who own their own homes, such a policy would be disastrous. The expectation, barely dampened by the recession, that house prices will rise forever, has led to too many gambling their financial survival that there will never be a slump. As long as houses are seen as a safe asset, rather than a potentially-risky investment, then government policy will always have to be to support that view.

Consider what happened when three 100m-high towers, which included 4,500 homes, were considered for White City in West London:

Nicki Grinling, 43, who lives in the St Quintin Estate in North Kensington, said locals were furious at the "underhand way" the plans had been handled: "We've always had fantastic vistas to the west, we see the beautiful sunsets and get lots of light. None of the buildings are higher than two storeys. It has always been the charm of this area, you don't feel like you're in central London."

It may well be the case that building those – comparatively small – towers would have "spoilt the character of the area" (and cast shadows over the Camerons' West Kensington house, to boot). And although Grinling doesn't say so explicitly, the character of complaints like this always carries a financial subtext – house prices will be depressed if the building goes ahead.

This is obviously an issue of intergenerational fairness. 49.5 per cent of owner-occupiers are aged 55 and up, while 56 per cent of renters – in the social and private sector – are below 35. When action is made to protect house prices, the former benefit at the expense of the latter.

But it's also one of equality more generally. The regions where planning permission is easiest to get are the North East and North West, where planning permission is granted in 94 and 90 per cent of cases; in London and the South East, it is granted in just 80 and 84 per cent of cases, respectively. The richer an area is, the harder it is to build something new and affordable in it, and so the more wealth is entrenched in those areas. The planning reforms introduced by the coalition, in the form of the National Planning Policy Framework, includes a presumption in favour of development - this is a good idea, but doesn't come anywhere near resolving these fundamental contradictions.

It's not just that wealth becomes concentrated because younger, poorer people can't move in to the area. The raft of permissions required to build new houses serve many aims, from environmental to community cohesion, but the interests of the propertied are always addressed above those of the dispossessed:

You can object if a change of use or new development will overlook your property, overshadow your property or cause additional noise.

"I was here first" is a fundamental tenet of how we deal with development in this country. So public policy becomes a case of trying to help those who can't buy into the system do so, without harming those already in it.

These two aims are irreconcilable. It is hard to buy a house because supply is constrained, but increasing supply will drop prices. Old housing policy laid the contradiction clear. Building council houses can not be seen as anything but increasing supply, and consequently depressing prices.

But current policy hides the conflict. By shifting housing expenditure from house building to paying the rents of social tenants, the government is able to pretend it will all come out in the wash. And when the constant drive to increase the value of property pays off – as it always would – in soaring housing benefit, the government can cap that, too. And then lower the cap. And scrap housing benefit entirely for under-25s.

Something's got to give. Two government policies are aimed head-on. Their collision may be happening in slow motion, but that's no mercy to those caught in the middle.

 

Sold! And probably entrenching generational divides. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Saudi Arabia is a brutal and extremist dictatorship – so why are we selling it arms?

With conflict in Yemen continuing, it’s clear that we’re failing to moderate the actions of “our despots”.

This year, during Pride week, I noticed something curious on top of the Ministry of Defence just off Whitehall. At the tip of the building’s flagpole hung the rainbow flag – a symbol of liberation for LGBTIQ people and, traditionally, a sign of defiance, too.

I was delighted to see it, and yet it also struck me as surprising that the governmental headquarters of our military would fly such a flag. Not only because of the forces’ history of homophobia, but more strikingly to me because of the closeness of our military establishment to regimes such as Saudi Arabia, where homosexuality is a sin punishable by jail, lashing and even death

That relationship has been under the spotlight recently. Ministers writhed and squirmed to avoid making public a report that’s widely expected to reveal that funding for extremism in Britain has come from Saudi Arabia. The pressure peaked last week, after a series of parliamentary questions I tabled, when survivors of 9/11 wrote to Theresa May asking her to make the report public. At the final PMQs of the parliamentary term last week, I again pressed May on the issue, but like so many prime ministers before her, she brushed aside my questioning on the link between British arms sales and the refusal to expose information that might embarrass the Riyadh regime. 

The British government’s cosy relationship with Riyadh and our habit of selling weapons to authoritarian regimes is “justified" in a number of ways. Firstly, ministers like to repeat familiar lines about protecting British industry, suggesting that the military industrial complex is central to our country’s economic success.

It is true to say that we make a lot of money from selling weapons to Saudi Arabia – indeed figures released over the weekend by the Campaign Against Arms Trade revealed that the government authorised exports including £263m-worth of combat aircraft components to the Saudi air force, and £4m of bombs and missiles in the six months from October 2016.

Though those numbers are high, arms exports is not a jobs-rich industry and only 0.2 per cent of the British workforce is actually employed in the sector. And let’s just be clear – there simply is no moral justification for employing people to build bombs which are likely to be used to slaughter civilians. 

Ministers also justify friendship and arms sales to dictators as part of a foreign policy strategy. They may be despots, but they are “our despots”. The truth, however, is that such deals simply aren’t necessary for a relationship of equals. As my colleague Baroness Jones said recently in the House of Lords:

"As a politician, I understand that we sometimes have to work with some very unpleasant people and we have to sit down with them and negotiate with them. We might loathe them, but we have to keep a dialogue going. However, we do not have to sell them arms. Saudi Arabia is a brutal dictatorship. It is one of the world’s worst Governments in terms of human rights abuses. We should not be selling it arms.”

With Saudi Arabia’s offensive against targets in Yemen continuing, and with UN experts saying the attacks are breaching international law, it’s clear that we’re failing to moderate the actions of "our despots".

The government’s intransigence on this issue – despite the overwhelming moral argument – is astonishing. But it appears that the tide may be turning. In a recent survey, a significant majority of the public backed a ban on arms sales to Saudi Arabia and just this weekend the Mayor of London denounced the arms fair planned in the capital later this year. When the government refused to make the terror funding report public, there was near-universal condemnation from the opposition parties. On this issue, like so many others, the Tories are increasingly isolated and potentially weak.

Read more: How did the High Court decide weapon sales to Saudi Arabia are lawful?

The arms industry exists at the nexus between our country’s industrial and foreign policies. To change course we need to accept a different direction in both policy areas. That’s why I believe that we should accompany the end of arms exports to repressive regimes with a 21st century industrial policy which turns jobs in the industry into employment for the future. Imagine if the expertise of those currently building components for Saudi weaponry was turned towards finding solutions for the greatest foreign policy challenge we face: climate change. 

The future of the British military industrial establishment’s iron grip over government is now in question, and the answers we find will define this country for a generation. Do we stamp our influence on the world by putting our arm around the head-choppers of Riyadh and elsewhere, or do we forge a genuinely independent foreign policy that projects peace around the world – and puts the safety of British people at its core?

Caroline Lucas is the MP for Brighton Pavilion.