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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Senior Labour and Liberal Democrat politicians call for a progressive alliance

As Brexit gets underway, opposition grandees urge their parties – Labour, Lib Dems, the SNP and Greens – to form a pact.

A number of senior Labour and opposition politicians are calling for a cross-party alliance. In a bid to hold the Conservative government to account as Brexit negotiations kick off, party grandees are urging their leaders to put party politics to one side and work together.

The former Labour minister Chris Mullin believes that “the only way forward” is “an eventual pact between Labour, the Liberal Democrats and the Greens not to oppose each other in marginal seats”. 

“Given the loss of Scotland, it will be difficult for any party that is not the Conservative party to form a government on its own in the foreseeable future," Mullin argues, but he admits, “no doubt tribalists on both sides will find this upsetting” and laments that, “it may take three or four election defeats for the penny to drop”.

But there are other Labour and Liberal grandees who are envisaging such a future for Britain’s progressive parties.

The Lib Dem peer and former party leader Ming Campbell predicts that “there could be some pressure” after the 2020 election for Labour MPs to look at “SDP Mark II”, and reveals, “a real sense among the left and the centre-left that the only way Conservative hegemony is going to be undermined is for a far higher degree of cooperation”.

The Gang of Four’s David Owen, a former Labour foreign secretary who co-founded the SDP, warns Labour that it must “face up to reality” and “proudly and completely coherently” agree to work with the SNP.

“It is perfectly legitimate for the Labour party to work with them,” he tells me. “We have to live with that reality. You have to be ready to talk to them. You won’t agree with them on separation but you can agree on many other areas, or you certainly should be trying.”

The Labour peer and former home secretary Charles Clarke agrees that Labour must “open up an alliance with the SNP” on fighting for Britain to remain in the single market, calling it “an opportunity that’s just opened”. He criticises his party for having “completely failed to deal with how we relate to the SNP” during the 2015 election campaign, saying, “Ed Miliband completely messed that up”.

“The SNP will still be a big factor after the 2020 general election,” Clarke says. “Therefore we have to find a way to deal with them if we’re interested in being in power after the election.”

Clarke also advises his party to make pacts with the Lib Dems ahead of the election in individual constituencies in the southwest up to London.

“We should help the Lib Dems to win some of those seats, a dozen of those seats back from the Tories,” he argues. “I think a seat-by-seat examination in certain seats which would weaken the Tory position is worth thinking about. There are a few seats where us not running – or being broadly supportive of the Lib Dems – might reduce the number of Tory seats.”

The peer and former Lib Dem leader Paddy Ashdown agrees that such cooperation could help reduce the Tory majority. When leader, he worked informally in the Nineties with then opposition leader Tony Blair to coordinate their challenge to the Conservative government.

“We’re quite like we were in 1992 when Tony Blair and I started working together but with bells on,” Ashdown tells me. “We have to do something quite similar to what Blair and I did, we have to create the mood of a sort of space, where people of an intelligent focus can gather – I think this is going to be done much more organically than organisationally.”

Ashdown describes methods of cooperation, including the cross-party Cook-Maclennan Agreement on constitutional reform, uniting on Scottish devolution, a coordinated approach to PMQs, and publishing a list 50 constituencies in the Daily Mirror before the 1997 election, outlining seats where Labour and Lib Dem voters should tactically vote for one another to defeat Tory candidates.

“We created the climate of an expectation of cooperation,” Ashdown recalls. Pursuing the spirit of this time, he has set up a movement called More United, which urges cross-party support of candidates and campaigns that subscribe to progressive values.

He reveals that “Tory Central Office are pretty hostile to the idea, Mr Corbyn is pretty hostile to the idea”, but there are Conservative and Labour MPs who are “talking about participating in the process”.

Indeed, my colleague George reveals in his report for the magazine this week that a close ally of George Osborne has approached the Lib Dem leader Tim Farron about forming a new centrist party called “The Democrats”. It’s an idea that the former chancellor had reportedly already pitched to Labour MPs.

Labour peer and former cabinet minister Tessa Jowell says this is “the moment” to “build a different kind of progressive activism and progressive alliance”, as people are engaging in movements more than parties. But she says politicians should be “wary of reaching out for what is too easily defined as an elite metropolitan solution which can also be seen as simply another power grab”.

She warns against a “We’re going to have a new party, here’s the board, here’s the doorplate, and now you’re invited to join” approach. “Talk of a new party is for the birds without reach and without groundedness – and we have no evidence of that at the moment.”

A senior politician who wished not to be named echoes Jowell’s caution. “The problem is that if you’re surrounded by a group of people who think that greater cooperation is necessary and possible – people who all think the same as you – then there’s a terrible temptation to think that everyone thinks the same as you,” they say.

They warn against looking back at the “halcyon days” of Blair’s cooperation with the Lib Dems. “It’s worth remembering they fell out eventually! Most political marriages end in divorce, don’t they?”

Anoosh Chakelian is senior writer at the New Statesman.