It was Boris who won the biggest cheer last night

The closing ceremony again demonstrated the Mayor's unrivalled popularity.

Perhaps it wasn't surprising given the paucity of talent on display (we wanted Glastonbury, they gave us the V Festival), but it's still notable that it was Boris Johnson, rather than any of the performers, who received the biggest cheer at last night's Olympics closing ceremony. The Games began with thousands chanting "Boris! Boris!" in Hyde Park, they ended with them roaring at the mere mention of his name in Stratford. It's hard to think of any other politician who could enjoy such a reception because, put simply, there isn't one.

Some will argue that this reflects the executive weakness of the Mayor's office. He's not a leader, he's a mascot. But Ken Livingstone never enjoyed such adoration and no alternative Labour (David Lammy?) or Conservative Mayor (Seb Coe?) would. The result is that Boris is now spoken of as a potential prime minister by both the left and the right, and viewed as an increasing threat by Labour.

Over the same period, for the first time since David Cameron became Prime Minister, conservative commentators have begun to question whether he will last until the election. He will, of course, but the mere posing of the question, just two years into his premiership, is an indictment of his leadership. Unsurprisingly, then, Cameron is increasingly unsettled by the Tories' prince across the Thames. In his final comments before he departed for his Mediterranean holiday, he pointedly noted that Boris had "some huge challenges to meet across the capital in his second term". Elsewhere, he stated: "I’m delighted that my party has so many big hitters. I’ve got the opposite of tall poppy syndrome." But even if that were true (with the possible exception of Ken Clarke, one searches in vain for a "big hitter" on the frontbench), Cameron would be forced to concede that there is no bigger hitter than Boris.

The danger for the Mayor, perhaps, is that he has peaked too soon. Will his brand of bonhomie be tired by 2015? I suspect not, and the Olympics will be remembered as the moment that the Tories (to their joy) and Labour (to its terror) realised as much.

The Olympic Flag is handed from Mayor of London, Boris Johnson to IOC President Jacques Rogge. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.