Through the keyhole: introducing the New Statesman's housing week

Over the next week, we're going to be examining the state of housing in Britain today.

Britain's housing situation is shambolic.

Since 1988, house prices have increased by 55 per cent in real terms according to the Halifax house price index — and almost all of that rise happened in just two years. Between 2002 and 2004 the average price of a house in the UK shot from £101,113 to £148,399. Since the market's peak, in 2007, the price of the average UK house has actually declined in real terms, but the price-to-earnings ratio of a house still stands at 4.5:1.

The bad situation nationwide is worse in our cities. As our economy steadily moves away from agriculture and manufacturing towards services, there is an ever-greater incentive to centralise our working lives in these hubs of activity. But expansive green belts stop us building our cities out, and the difficulty of getting planning permissionnot to mention the continued unpopularity of high-rise living — stop us building up.

As house prices have risen, we've also radically changed the way we provide accommodation for the poorest in society. In the post-war era, house-building was done by a mixture of local authorities and private enterprise. By the end of Thatcher's premiership, local authorities had largely stopped building homes altogether; and as a result of the recession, the number of new units built per year by private enterprise has also halved.

Gone is the idea of a council home for life, ideally ensuring stability, community and safety. Those ideals were rarely met, and it's undeniable that council estates had their flaws, but the alternative is worse. The private rental sector is expected to pick up the slack, with rents subsidised by the government's housing benefit. Landlords can, and do, raise rents at any time, forcing families from substandard house to substandard house — and occasionally to hostels, B&Bs and even the streets.

Even while the bottom end of the market is being forced to turn to the private rental sector, the top end is as well. The 0 per cent deposits of the pre-crisis world are gone, apparently forever. But while mortgages have reverted to the nineties, house prices haven't, and so, according to Halifax, the average age of a first-time buyer is now 30 years old (rising to 32 in London). If you want to live in a city, and don't have a nest-egg from your parents, your only option is to rent, usually indefinitely.

An increasing proportion of people renting at both ends of the housing market, matched with the precipitous drop in housebuilding since 2007, obviously means a squeeze on rents. But the government responded, not by tackling the cause, but by capping the amount of housing benefit people could receive, locking a whole social class out of large swathes of London.

The elephant in the room, of course, is the implicit promise that a house purchase is something that you can only ever make money on. If house prices were to fall, that would be disastrous for most people who own property, and that disaster would be passed on to the general economy. But if housing costs are not to fall, then Britain's young people and renters will have to carry on living through the disaster we are already experiencing. "The whole of British housing policy can be seen as an effort to reduce the cost of housing without affecting house prices", says Dan Davies, and that's a doomed attempt from the start.

Over the next week, we're going to be examining these concerns in greater detail. We'll look at the private rental sector, at the criminalisation of squatting and at the virtues of high-rises; we'll also be investigating the cost of the bedroom tax, and the implications of the housing benefit cap. If you think you have something to add to the discussion, you can tweet me or email me, and all the pieces will be collected here (and here) as the week goes on.

Monday: George Eaton on how the bedroom tax will hit disabled people, and Alex Hern on the death of Daniel Gauntlett due to the new anti-squatting laws.

Tuesday: Preston Byrne on why the Eastleigh by-election set back reform of planning laws, and Labour MP Helen Goodman on how trying to live on £18 a week showed the unfairness of the bedroom tax. 

Wednesday: Social researcher Declan Gaffney demonstrates how housing benefit has risen through need alone, and Simon Parkin on the dilemma faced by his grandparents as one of them has to go into care.

Thursday: Jeremy Messenger paints a picture of the omnipresent lack of stability, the invasion of privacy and the constant threat of being moved on tenants in the private rental sector experience, and VMC Rozario gives an innovative idea for how to build more houses.

Friday: Rebecca Tunstall on how housing traps people in unemployment.

A housing estate in Glasgow. 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.

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Chuka Umunna calls for "solidarity" among Labour MPs, whoever is voted leader

The full text of shadow business secretary Chuka Umunna's speech to Policy Network on election-winning ideas for Labour's future, and the weaknesses of the New Labour project.

There has never been an easy time to be a social democrat (or “democratic socialist” as we sometimes call ourselves in Britain). Whereas the right can demonise the poor and extol the virtues of the market, and the hard left can demonise the market and extol the role of the state, our position of constraining the domination of markets and reforming the state is, by definition, more complex.

It is nonetheless the case that social democracy has a historic responsibility, in every generation, to renew democracy and preserve a civic culture. This is achieved not through soundbites and slogans, but through the hard-headed development of a progressive politics that reconciles liberty and democracy, new comers and locals to our communities, business and workers, in a common life that preserves security, prosperity and peace.  This historic mission is all the more urgent now and my determination that we succeed has grown not weakened since our election defeat last May.

But, in order to be heard, it is necessary to make balanced and reasonable argument that both animates and inspires our movement, and which is popular and plausible with the people.  The first is pre-requisite to the second; and there is no choice to be made between your party’s fundamental principles and electability. They are mutually dependent - you cannot do one without the other.

We are in the midst of choosing a new leader and it is clear to anyone who has watched the UK Labour Party leadership election this summer that amongst a significant number there is a profound rage against Third Way politics – as pursued by the likes of Bill Clinton, Tony Blair, Gerhard Schröder and others - as a rejection of our fundamental values.

In the UK there is a view that New Labour accepted an uncritical accommodation with global capital that widened inequality, weakened organised labour and we were too close to the US Republicans and too far from the European left.

I do not believe this is fair, not least because we rescued many of our public services from the scrap heap when we came to office in 1997 and there were very significant achievements  we should celebrate.  New Labour renewed our National Health Service in a fundamental way; we built new schools and improved existing ones; we set up new children’s centres all over the country; we brought in a National Minimum Wage; we worked with others to bring peace to Northern Ireland; we introduced civil partnerships.  Just some of our achievements.

However, though we may take issue with the critique, I do not think we can simply dismiss out of hand those who hold critical views of New Labour. Like any government, the New Labour administration made mistakes - it could and should have achieved more, and done more to challenge the Right’s assumptions about the world. In the end, it is not unreasonable to be ambitious for what your party in government can achieve in building greater equality, liberty, democracy and sustainability. It is far better we acknowledge, not reject, this ambition for a better world, as we seek to forge a new politics of the common good fit for the future.

Realising our values in office has been disrupted by globalisation and the surge of technological forces that are displacing and reshaping industry after industry.

Some argue that globalisation as an ideological construct of the right. But we must recognise that we live in an increasingly integrated world in which markets have led to an unprecedented participation of excluded people in prosperity, a rise in living standards for hundreds of millions  of people and a literacy unprecedented in human history – this is particularly so in emerging economies like my father’s native Nigeria. And the internet has led to a level of accountability that has disturbed elites.

Yet, this has been combined with a concentration of ownership that needs to be challenged, of a subordination of politics that requires creative rather than reactive thinking, and these global forces have exacerbated inequalities as well as helped reduce poverty.

So it is important that we understand the sheer scale and impact of new technologies. At the moment we are engaged in a debate about Uber and its threat to one of the last vestiges of vocational labour markets left in London, those of the black taxi cabs and their attainment of 'The Knowledge'. But the reality is that within the next decade there will be the emergence of driverless cars so we have to intensify our exploration of how to support people in a knowledge economy and the realities of lifelong learning, as well as lifelong teaching. As people live longer we will have to think about how to engage them constructively in work and teaching in new ways.

Once again, I'm addressing all of this, Social Democracy requires a balanced view that domesticates the destructive energy of capital while recognising its creative energy, that recognises the need for new skills rather than simply the protection of old ones. A Social Democracy that recognises that internationalism requires co-operation between states and not a zero sum game that protectionism would encourage.

Above all, Social Democratic politics must recognise the importance of place, of the resources to be found in the local through which the pressures of globalisation can be mediated and shaped. Our job is to shape the future and neither to accept it as a passive fate nor to indulge the fantasy that we can dominate it but to work with the grain of change in order to renew our tradition, recognising the creativity of the workforce, the benefits of democracy and the importance of building a common life.  Sources of value are to be found in local traditions and institutions.

This also requires a recognition that though demonstration and protest are important,; but relationships and conversations are a far more effective way of building a movement for political change.

One of the huge weaknesses of New Labour was in its reliance on mobilisation from the centre rather than organising. It therefore allowed itself to be characterised as an elite project with wide popular support but it did not build a base for its support within the party across the country, and it did not develop leaders from the communities it represented. It was strong on policy but weak on strengthening democratic politics, particularly Labour politics.

Over half a million people are now members, supporters or affiliated supporters of our party, with hundreds of thousands joining in the last few weeks. Some have joined in order to thwart the pursuit of Labour values but many more have joined to further the pursuit of those values, including lots of young people. At a time when so many are walking away from centre left parties across the Western world and many young people do not vote let alone join a party, this is surely something to celebrate.

So it is vital that we now embrace our new joiners and harness the energy they can bring to renewing Labour’s connection with the people. First, we must help as many them as possible to become doorstep activists for our politics. Second, I have long argued UK Labour should campaign and organise not only to win elections but to affect tangible change through local community campaigns. We brought Arnie Graf, the Chicago community organiser who mentored President Obama in his early years, over from the U.S. to help teach us how to community organise more effectively. We should bring Arnie back over to finish the job and help empower our new joiners to be the change they want to see in every community – we need to build on the links they have with local groups and organisations.

I mentioned at the beginning that in every generation Social Democracy is besieged from left and right but the achievements of each generation are defined by the strength of a complex political tradition that strengthens solidarity through protecting democracy and liberty, a role for the state and the market and seeks to shape the future through an inclusive politics. Solidarity is key which is why we must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office.

Yes, these are troubled times for social democrats. All over Europe there is a sense among our traditional voters that we are remote and do not share their concerns or represent their interests or values.  There is surge of support for populist right wing parties from Denmark to France, of more left wing parties in Greece and Spain and in Britain too. There is renewal of imperial politics in Russia, the murderous and abhorrent regime of ISIL in the Middle East, volatility in the Chinese economy and in Europe a flow of immigration that causes fear and anxiety.

But, the task of Social Democracy in our time is to fashion a politics of hope that can bring together divided populations around justice, peace and prosperity so that we can govern ourselves democratically. We have seen worse than this and weathered the storm. I am looking forward, with great optimism to be being part of a generation that renews our relevance and popularity in the years to come.

Chuka Umunna is the shadow business secretary and the Labour MP for Streatham.