Right-to-buy houses are now just owned by private landlords

"In one London borough almost half of ex-council properties are now sub-let to tenants."

The Mirror's Nick Sommerlad has a great piece of investigative journalism today, looking at who now owns the council houses sold off under Thatcher.

Sommerlad writes:

A third of ex-council homes sold in the 1980s under Margaret Thatcher were now owned by private landlords. In one London borough almost half of ex-council properties are now sub-let to tenants.

Tycoon Charles Gow and his wife own at least 40 ex-council flats on one South London estate. His father Ian Gow was one of Mrs Thatcher’s top aides and was Housing Minister during the peak years of right-to-buy.

Right-to-buy was intended to create a nation of home-owners (we actually already had a nation of home-owners, but we wanted more home-owners). There's competing evidence about the efficacy of that move; the Conservative belief was that owning your home gives you a greater sense of community, a motivation to treat your abode and your area well, and a leg-up out of poverty with your new-found equity.

The darker side of it is that debt is historically an important tool of control. It's important to keep your head down at work, not go on strike, and pay off your mortgage if losing your job won't just lose your house, but will saddle you with thousands of pounds of debt.

But whatever the supposed positives of right-to-buy are, they rely on the people who bought the houses actually living in them. In hindsight, it appears that the policy was just a transfer of Britain's housing stock from social landlords to private ones. It's hard not to see that as the beginning of the problems we're still experiencing now.

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.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

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