Hugh Grant: tabloid scrutiny is like living under the Stasi

In the wake of his <em>New Statesman</em> scoop, the actor debates privacy and superinjunctions.

Newsnight tackled the issue of privacy and injunctions last night and its panellists included Hugh Grant, Helen Wood (the prostitute in the Rooney case), the journalist Fraser Nelson and the lawyer Charlotte Harris.

"I don't have many strongly held beliefs but I do believe in human rights . . . and a very basic right is the right to privacy," said Grant. "I do think it is a massive scandal . . . that, for a number of years now, our tabloid newspapers have been able to invade privacy without much recourse.

"Some cases [are] for good reason but many of the celebrity exposés are purely for profit, so to me there's no distinction between mugging someone for their wallet and their watch and selling it on the street and mugging them for their privacy and selling it in a newspaper."

Asked by Emily Maitlis how tabloid scrutiny affects his life, Grant said:

It's a bit like living under the Stasi. You never know if there's a long lens in the bushes at the end of my road . . . I've had my phone hacked -- the police have told me that now. They're always looking for anyone you might have been in contact with, any hotel you might have stayed at -- they might go and talk to them, try to pay them off. I'm not a perfect person by any means but it doesn't feel right that, just because you've had a bit of success, in this country one of your most basic human rights is removed.

Grant added that he was "very pleased with this whole injunction business" , as without a steady diet of celebrity kiss'n'tells, tabloids would go out of business. "There's very little journalism done in those papers now," he said. "It's mainly stealing successful people's privacy and selling it."

The Spectator editor (and News of the World columnist) Fraser Nelson then tried to argue that the press was already effectively regulated by the PCC. "You can't say that in a serious voice," chipped in Grant.

Nelson said that his magazine received "lots" of letters from the regulatory body and took them seriously. Grant was unimpressed: "The PCC is the laughing stock of the world. Utterly toothless."

He said that even in "outrageous" cases, such as when the Mirror printed his medical records, "You might get a tiny little thing saying 'Hugh Grant's complaint against the Mirror has been upheld' on page 96."

Charlotte Harris, a lawyer at Mishcon, backed Grant, saying that the PCC weren't effective -- "and weren't interested in phone-hacking". She said that behind almost every tabloid splash was a cash negotiation of what the story was worth.

The former escort Helen Wood then argued that injunctions were unfair because the man involved was protected while she wasn't -- which sounds like an argument for making the system fairer and making injunctions available to those without tens of thousands of pounds to spare, rather than scrapping them.

Afterwards, it was time for round two of Grant v Nelson, with the actor telling the journalist: "If someone came after your privacy . . . and said Fraser Nelson is getting up to all kinds of mischief with this girl who's dressed as a nun and likes to spank him in a nappy . . ."

"That would never get out, that story," interjected Nelson.

"I don't believe that story either," conceded Grant. "But you would take out an injunction to try to stop it."

It's worth watching the programme in full as the debate is a cracker, with Harris explaining the difference between injunctions and superinjunctions, and Grant admitting, "men are naughty" and complaining of the "successive pussy governments" that have refused to tackle the problem.

Before the discussion, there's also the treat of Kelvin MacKenzie intoning this ominous warning: "I have a piece of information which will rather nicely depth-charge a cabinet minister, probably towards the end of next week when I publish it in my column."

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

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Has Brexit burst the British housing bubble?

The fall in value of the pound is having a negative impact on property prices.

The high cost of housing in the UK has almost nothing to do with supply and demand. What matters is political control. Rents are high because landlords have gained the upper hand politically. The consequences are vividly illustrated in Ken Loach’s new film focusing on inequality in Britain, I’ Daniel Blake.  As a student in the 1980s I paid £9 a week to rent a room in a shared house in Newcastle upon Tyne. Private rent was low because for decades before then rents had been regulated. It was the lifting of that regulation that meant rents could rise so that now students have to borrow vast sums of money just to have a place to live. Today’s students pay many multiples more in rent than I ever did, and millions of families with children are also struggling because they have to rent privately.

Because rents have been allowed to rise as high as landlords can get away with, the landlords have been encouraged to buy up more and more properties that were once social housing or lived in by a family, who had bought the property with a mortgage. The number of people renting privately doubled between the last two censuses of 2001 and 2011. That has never happened before. It was the end result of years of deregulation and the withdrawal of our government from representing our interests in housing. Well-regulated private renting is a benefit, but without rent regulation it becomes a social evil.

Housing prices are not determined by supply and demand because you do not have a choice about needing to be housed. Allow an unregulated market to develop when social housing is also being cut and there is no choice not to buy what is on offer, other than sleeping on the streets. Prices will go sky-high. The purchase prices for mortgage borrowers also rise to astronomical levels as first-time buyers are competing with landlords to buy properties, and so have to be able to secure a mortgage equal to the amount a landlords can wring out of people desperate for a home.

In the first blog in this series on affordable housing published by Taxpayers Against Poverty, Stephen Hill, director of C2O Futureplanners, explained: “There are over one million less affordable homes than there were in 1980. The population has grown by nearly nine million people. Incomes at the median level are flat, and secure employment is increasingly scarce.” He is correct, but the situation is even worse than that — it is not lack of housing that is the problem. Each annual census in the UK records the amount of housing that exists at each point in time. It does this by recording the number of rooms in homes over a certain size. The number of rooms per person has risen at every census since 1981.

The 2011 census was the first to count bedrooms and found that in England and Wales there were 66 million for a population of 55 million (21 million of whom were married or in a civil partnership). So even if we make the ludicrous assumption that only married people share a bed and no children use bunk-beds, there were at least 22 million bedrooms empty on census night 2011. We have not been building a huge number of new houses or flats in recent years, but we have been adding extensions on to our existing homes and so we now have more housing than we have ever had before, per person and per family. We just share it out more unfairly than we have ever done before.

If housing prices were about supply and demand then our surplus of bedrooms would result in falling prices, but this is not a free market. You are not free to buy a flat that has been left empty in London to appreciate in value by its owner. They do not want to sell, or sometimes even rent it out, and you almost certainly would not have the money even if they did.

It is in the housing market that the majority of investments are made in the UK, housing is where most wealth is held. As we become more and more economically unequal it is through housing that we most clearly see that most of us are losers while just a few (who own multiple properties) are winners. Recent UK governments have been allowing wealth and income inequalities to rise and rise.

As Fred Harrison explained in the second blog in this series, government has not only withdrawn from regulating housing rents and profits to avoid this winner-takes-all-economics — it is now even prepared to provide £2bn to buy properties that home builders can’t sell so that they don’t need to lower prices even if landlords and first-time buyers will not buy their properties. The government sees renting-seeking as a social good, and believes that the market in housing should be regulated less and less with each year that passes, other than intervening to keep prices high and rising. Meanwhile, street homelessness rises, evictions rise, the debt of mortgage holders rises, housing prices rise and a small minority of the population become richer. So how will it end?

You might have thought that prices would stop rising when landlords stopped buying properties because the return on their investments in terms of rent would not making it worth their while paying, say, one million pounds for a three-bed house in a part of London near a tube station. Suppose that the most a family could pay was £20,000 a year in rent. The landlord’s “return” on their investment would only be two per cent a year, ignoring wear-and tear and anything else that they might be able to off-set against paying tax. If the forces that were actually at play were “supply and demand” then surely prices have to stop rising when people can no longer afford the rents?

However, landlords have another return: the escalating value of the property itself. If the property is rising by five per cent a year in value then they are making a seven per cent return when they rent it out, even if annual rents are just two per cent of its value. The rise of five per cent a year is due to speculation which is itself partly fed by a belief that the government of the day will do all it can to protect their investments, but it will only do that up to a certain point.

Because it needs to raise taxes a little given the state of the national finances, the UK government is now withdrawing its support of reckless profit taking by smaller landlords. In October 2016 a group of buy-to-let landlords lost their appeal in the courts to try to continue to be able to claim their mortgage interest payments as a business expense. From 2017 only the largest of landlords who set up companies to rent out their properties will be able to continue to do that.

The government knows that the housing market is in trouble. That is why Philip Hammond, the current Chancellor, announced that their “Help to Buy” scheme (which was aimed at the very best-off of potential first time buyers) will end in December 2016. The government knows that with the risk of falling house prices in future it cannot afford the guarantees that “Help to Buy” created. “Help to Buy” schemes were the previous Chancellor, George Osborne’s biggest spending commitment. They were designed to help inflate the housing market and keep prices rising, but eventually every speculative bubble has to burst.

On 21 September the first reports of a stalling market were released under headlines that included: “Q2 UK house sales at an all-time quarterly low says Land Registry”. UK Land Registry figures now show housing prices to have fallen in London by 7% so far in 2016, with the number of sales roughly halving. Investors have stopped buying; if a recent investor wants to sell they have to do so at a loss. Nationally prices fell by 4.5%.

So what happened to the magic-money-tree? In short the pound fell in value and it has been continuing to fall ever since the UK voted to leave the EU. There was always going to be “the event” that triggered the end of speculation and it is looking more and more likely as if Brexit was that event. Once the pound begins to fall in value then any overseas investor knows that if they buy property in the UK, even if its value in pounds does not fall, it will be worth less to them in future.

Suddenly UK housing is not a safe asset. Suddenly prospective landlords actually have to try to rely on their tenants’ rent to pay back their borrowings. Suddenly housing prices change despite no great alteration in supply or demand. Suddenly the whole edifice looks unsafe, not just for the majority of young and almost all poor people in Britain, but for the large majority of the population.

It was never “supply and demand” that determined our housing costs and profits. Relying on that belief did not result in greatly improved cheaper housing for most people, but it was easy to claim that somehow tomorrow would be better if we just left it to the market — until we left it to the ever more unregulated market for too long. Housing costs, prices and supply are determined by governments, including those that shirk their responsibilities and have too much concern for the economic fortunes of the affluent few.


This is part of a series of blogs on affordable housing published by Taxpayers Against Poverty. You can read others in the series on their website or sign up to attend their seminar in Parliament on the 16th November here: