Answering John Rentoul - on Iran, Israel and the never-ending nuclear debate

Iran Watch, part 6.

Iran Watch, part 6.

Ok. This is getting BO-RING. The Sindy's John Rentoul says "the world might have decided it has better things to do" than follow our ongoing blog-and-Twitter row over Iran/Israel/nukes - but, bizarrely, he says this at the end of yet another blogpost - "Calling Mehdi Hasan" - in which he yet again dodges the key issues.

This'll be my last post on Rentoul - I promise! - and I'll try and make it as short as possible because I know he doesn't like having to read long articles. (I can only guess that he prefers to conduct debates on geopolitics via 140-character putdowns on Twitter. Then again, his knowledge of Iran is pretty superficial: he claims, for example, that the Iranian president would be in control of nuclear weapons when of course, if such weapons were to be built by the regime, it would be Ayatullah Khamenei with his finger on the trigger and Ahmadinejad wouldn't be allowed anywhere near them!)

Three quick points:

First, Rentoul wants to misquote people and then pretend he didn't and/or pretend it doesn't matter. It was Rentoul who claimed President Mahmoud Ahmadinejad had threatened to "wipe Israel off the map", refused to correct himself or the belligerent meaning he ascribed to those comments and who now says that he knew I "would go off into the old debate about the translation of the Iranian president's 2005 words about Israel". This is wonderfully evasive as it leaves the passing reader unaware of the fact that, "old" or not, the debate is over and Rentoul is wrong. Ahmadinejad, for all his flaws, sins and crimes, didn't say that. Rentoul knows he didn't say that. Yet this proud pedant continues to flagrantly misquote the Iranian president in order to beat the drum for war against Iran.

Second, Rentoul again asks "why the warmongering IAEA should allow such a government to develop nuclear weapons". I'm not sure I understand this contorted and rather loaded question - the IAEA isn't a "warmongering" organisation (though its director general does look a little compromised to me) and hasn't said Iran is developing weapons. Has he even bothered to read the IAEA's reports? I'm happy to extend the "Iain Dale challenge" to Rentoul, if he's interested in trying to win the £100 cash prize that's still on offer.

Third, double standards matter. Despite Rentoul's unfortunate smears, my own view is clear and well-documented: I want a nuclear-weapons-free Middle East in accordance with UN resolution 687. I don't want Israel or Iran to have nuclear weapons (and nor does the IAEA!); Rentoul is ok with the former having 'em but not the latter.

That's what this row has been about. The rest is noise.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.