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

Getty
Show Hide image

However Labour do on Thursday, Jeremy Corbyn's still the right leader

When the Blairites talk about winning by appealing to the country, what do they mean?

Commentators have spent the last few weeks predicting exactly what will happen on Thursday and, more importantly, what the results will mean. One thing is certain: no matter what the Labour party achieves, Jeremy Corbyn’s position is safe. Not only is the membership overwhelmingly supportive of the leader, but also Blairites would be foolish to launch an attack with the European referendum just over a month away.

So whatever happens on Thursday, Jeremy Corbyn’s position will be as secure as it is at this exact moment in time. I want to go further than explaining simply why whatever happens on Thursday will not spell the end for the Labour leader by arguing why, in any case, it should not.

Jeremy Corbyn was elected leader of the Labour party with an astonishing mandate. Paid-up Labour party members, Labour supporters and Labour affiliates gave this to him. Polling consistently showed that the ability to ‘win’ elections was not the reason people voted for Jeremy. I don’t think that the Labour leader’s opponents are accurate in suggesting that this is because Labour supporters are self-confessed losers. In many ways we are the realists.

I am perfectly aware of the current political ground. The country is largely opposed to accepting more refugees. People who rely on state benefits have been stigmatised. Discrimination is rampant within our society. A majority of people are found to oppose immigration. So when the Blairites talk about winning by appealing to the country, what do they mean exactly? I’m sure that even Liz Kendall would not have mounted an election campaign that simply appealed to the way issues were seen in the polls.

Jeremy Corbyn inherited an uphill battle; he didn’t create it. Anyone who suggests so is shamelessly acting so as to discredit his leadership. Labour’s message is of equality and solidarity. Our party proudly stands as an institution that seeks to pull down the barriers that bar the less privileged from achieving. But when the nation is gripped by the fear of the ‘other’ and man has been pitted against woman in a war of all against all how can Labour’s message break through?

The answer is time. Labour needs time to rebuild and assess the situation on the ground. Labour needs time to talk to people. Labour needs time to change the frame of the debate and the misleading narrative that the Tories are proud to spout because it wins them votes. The Labour party is better than that. We have to be better than that. If we are not then what is the point in the Labour party at all?

The idea that Jeremy Corbyn could possibly change the entire narrative of the nation in 8 months is laughable. But he has started to. People have seen through the Tory lies of helping those in work get on. People have seen the government cut support for the poor while giving to the rich. At the same time they have been fed lies about the Labour leader. Jeremy Corbyn is an extremist. Jeremy Corbyn is too radical. Jeremy Corbyn is a friend of terrorists. Jeremy Corbyn wants to disband the army. Jeremy Corbyn wants to talk to ISIS. Jeremy Corbyn hates Britain. And so on.

In such an environment how is it surprising that after just 8 months Labour may not make huge gains across the country? It is likely that people will call for Jeremy to resign. When they do, ask what Andy, Liz or Yvette would have done differently. They would have needed time too.  

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.