Why we need Help to Build, not Buy

The public recognises what too many politicians do not; that a mass Macmillan-style programme of housebuilding is the only solution to the housing crisis.

Outside of the Treasury, it is hard to find anyone who thinks Help to Buy is a good idea. Vince Cable, Mervyn King, the TUC, the IMF, the Institute of Directors and the Office for Budget Responsibility have all warned that the scheme –which allows borrowers to take out a 95 per cent mortgage, with the government backing part of their loan –will inflate demand without increasing supply and create the conditions for another housing crash.

If few doubt that George Osborne’s wheeze is bad economics, the consensus remains that it is smart politics. The logic runs that by widening home ownership, Help to Buy will enable the Tories to win over young, aspirational voters in the same way that Margaret Thatcher’s Right to Buy did a generation ago. In an attempt to emulate the images of Thatcher handing the keys to those who bought their council homes, David Cameron has asked staff to arrange for him to meet those who have benefited from the scheme whenever he visits a marginal constituency. Help to Buy is, he says, “about social mobility . . . about helping people who don’t have rich parents to get on and achieve their dream of home ownership”. He was keen to stress that the average price of a house bought under the scheme is £163,000, with most located outside of London and the south-east, and that three-quarters of the 2,384 applicants are first-time buyers (a quarter, it follows, are not).

The Tories believe that they will derive another electoral benefit as rising prices create a feel-good factor among existing owners, 45 per cent of whom voted Conservative in 2010. Osborne is reported to have told the cabinet: “Hopefully we will get a little housing boom and everyone will be happy as property values go up.”

This vision of a nation hooked on the narcotic of rising prices is at odds with reality. A poll last month by YouGov for Shelter found that 66 per cent of the public do not want house prices to increase. That figure is up 8 percentage points since June, the period in which Help to Buy was fully launched. This trend holds among outright homeowners (67 per cent of whom want prices to fall or stay the same), Conservative voters (65 per cent), Labour voters (66 per cent), Liberal Democrat voters (73 per cent), readers of the Daily Mail (66 per cent) and readers of the Daily Express (65 per cent). Chastened by the experience of the crash and anxious at the lack of affordable housing for the young, the public no longer views rising prices as an unqualified good.

If the impression develops that the government is focused on maximising prices at the expense of supply, Help to Buy could prove to be a net negative. The number lifted on to the property ladder will be matched or exceeded by the number for whom the idea of owning their own home moves ever further out of reach. And those unable to buy will resent subsidising mortgages for properties worth up to £600,000 –more than three times the national average.

The public recognises what too many politicians do not; that a mass Macmillan-style programme of housebuilding is the only solution to the housing crisis. Merely to keep pace with the rising number of households, the UK needs a minimum of 1.5 million new homes to be built by 2020.

Yet in the same week that ministers lauded Help to Buy, government figures showed that the net supply of housing rose by just 124,270 in 2012- 2013, a fall of 8 per cent since 2011-2012 and the lowest number on record. It is Help to Build, not Help to Buy, that Britain needs. The Tories should not assume that their disavowal of this will go unpunished.

Why aren't we building enough houses? Image: Getty

George Eaton is political editor of the New Statesman.

This article first appeared in the 13 November 2013 issue of the New Statesman, The New Exodus

Photo: Getty
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Brexit Big Brother is watching: how media moguls control the news

I know the Daily Mail and the Daily Telegraph well, and I don’t care to see them like this.

It would take a heart of stone now not to laugh at an illustration of Theresa May staring defiantly out at Europe from the British coast, next to the headline “Steel of the new Iron Lady”.

Those are, however, the words that adorned the front page of the Daily Mail just five months ago, without even a hint of sarcasm. There has been so much written about the Prime Minister and the strength of her character – not least during the election campaign – and yet that front page now seems toe-curlingly embarrassing.

Reality has a nasty habit of making its presence felt when news is remorselessly selected, day in and day out, to fit preconceived points of view. May and her whole “hard Brexit” agenda – which the public has now demonstrated it feels, at best, only half-heartedly enthusiastic about – has been an obsession of several British newspapers, not least the Daily Mail and the Daily Telegraph.

I know these papers well, having spent the best part of a quarter-century working for them, and I don’t care to see them like this. When I worked there, a degree of independent thought was permitted on both titles. I joined the Telegraph in 2002; at the time, my colleagues spoke with pride of the paper’s tolerance to opposing views. And when I was at the Mail, it happily employed the former Labour MP Roy Hattersley.

Would I be able to run positive stories about, say, my mate Gina Miller – who successfully campaigned for parliamentary scrutiny of the Brexit process – in the Telegraph if I were there today? Or at the Daily Mail? Dream on: it’s two minutes of hate for that “enemy of the people”.

Morale in these newsrooms must be low. I am finding that I have to allow an extra half-hour (and sometimes an extra bottle) for lunches with former colleagues these days, because they always feel the need to explain that they’re not Brexiteers themselves.

Among the Telegraph characters I kept in touch with was Sir David Barclay, who co-owns the paper with his brother, Sir Frederick. Alas, the invitations to tea at the Ritz (and the WhatsApp messages) came to an abrupt halt because of you-know-what.

I don’t think Sir David was a bad man, but he got a Brexit bee in his bonnet. I was conscious that he was close to Paul Dacre, the editor of the Daily Mail, and both had cordial relations with Rupert Murdoch. It became clear that they had all persuaded themselves (and perhaps each other) that Brexit suited their best interests – and they are all stubborn.

It seems to me unutterably sad that they didn’t sound out more of their factory-floor staff on this issue. We journalists have never been the most popular people but, by and large, we all started out wanting to make the world a better place. We certainly didn’t plan to make it worse.

People used to tell me that papers such as the Daily Mail and the Telegraph changed because the country had but, even in the darkest days, I didn’t agree with that premise. We are in the mess we’re in now because of personalities – in newspapers every bit as much as in politics. The wrong people in the wrong jobs, at the wrong time.

Would the Daily Mail have backed Brexit under Dacre’s predecessor David English? It is hard to imagine. He was a committed and outward-looking Europhile who, in the 1970s, campaigned for the country to join the EU.

I can think of many Telegraph editors who would have baulked at urging their readers to vote Leave, not least Bill Deedes. Although he had his Eurosceptic moments, a man as well travelled, compassionate and loyal to successive Conservative prime ministers would never have come out in favour of Brexit.

It says a great deal about the times in which we live that the Daily Mirror is just about the only paper that will print my stuff these days. I had a lot of fun writing an election diary for it called “The Heckler”. Morale is high there precisely because the paper’s journalists are allowed to do what is right by their readers and, just as importantly, to be themselves.

Funnily enough, it reminded me of the Telegraph, back in the good old days. 

This article first appeared in the 22 June 2017 issue of the New Statesman, The zombie PM

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