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
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.