The housing crisis is pricing workers out of ever more of Britain

Renting is now more expensive than owning with a mortgage in 44 per cent of all local authorities, but for many families it is the only option.

The fact that many ordinary working families are priced out of central London boroughs such as Westminster, Kensington and Chelsea and Islington will surprise no one. But a new report by the Resolution Foundation shows that there are now affordability black spots across all parts of the country where low and middle income families would have to spend more than a third of their income on housing to find a decent place to rent or buy. Working families are being priced out.

A couple with one child on £22,000, for example, has to spend more than 35 per cent of its net income – a commonly accepted ceiling for affordability - to meet the ongoing costs of a mortgage in nearly two fifths of all local authorities. If the same family wanted to rent privately, they would find that renting was unaffordable in a third of all local authorities. Housing costs are becoming a struggle even for median income families on £28,000.  In one in 16 local authorities, rent would eat up more than 35 per cent of their income. And in London, there is no local authority where a family on £22,000 can rent even a modest a two-bedroom property and pay less than 35 per cent of their income in rent.

Of course, there are low income families renting in all of these 'unaffordable' parts of the country but they do so at a sacrifice. They are either paying a vast amount of their income towards housing costs and forgoing other essentials, living in cheap, substandard accommodation or in overcrowded conditions. or maybe living miles from work, where housing costs are lower. With incomes for ordinary working families not expected to be any higher in 2020 than they were in 1997-98, the affordability problems of Britain’s ordinary working families look set to persist.

The report highlights the growing affordability challenge for those in private rent, as falling wages fail to match even modest rent rises in some part of the country. Renting is now more expensive than owning with a mortgage in 44 per cent of all local authorities, many of which are in the north. In the north east, for example, renting is more expensive than owning with a mortgage in all local authorities in the region and in the north west, in more than eight out of ten local authorities. But for many low and middle income families, renting privately is the only option. Social housing, while affordable in all parts of the country, is in short supply and targeted at the most vulnerable and even a 10 per cent buyer’s deposit can be difficult to save for on a modest income. Of the 1.3 million low to middle income households who now face unaffordable housing costs, close to half are private renters.

The focus of the government’s response to this affordability crisis has been the Help to Buy scheme which provides government support to allow those who cannot afford to buy with a conventional mortgage access to a high-loan-to-value mortgage or an equity loan. This will no doubt help some people to get on the housing ladder but it will do little to meet the needs of the low to middle income families who currently face the biggest affordability problems. It has become almost trite to say that the solution to Britain’s housing problem is that we need to build more homes. But without more supply, schemes like Help to Buy simply risk inflating house prices as more people come onto the market in search of a home. Estimates suggest we need more than double the number of homes that we are currently building each year. But improving affordability has to be more than a simple numbers game. We need to build more homes in the right locations and of the right type- and at the right price - not just more homes for sale or prime central London rental developments - to meet the needs of households who currently have few options. 

"Schemes like Help to Buy simply risk inflating house prices as more people come onto the market". Photograph: Getty Images.

Vidhya Alakeson is deputy chief executive of the Resolution Foundation

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Corbyn's supporters loved his principles. But he ditched them in the EU campaign

Jeremy Corbyn never wanted Remain to win, and every gutless performance showed that. Labour voters deserve better. 

“A good and decent man but he is not a leader. That is the problem.” This was just-sacked Hilary Benn’s verdict on Jeremy Corbyn, and he’s two-thirds right. Corbyn is not a leader, and if that wasn’t obvious before the referendum campaign, it should be now. If the Vice documentary didn’t convince you that Corbyn is a man who cannot lead – marked by both insubstantiality and intransigence, both appalling presentation and mortal vanity – then surely his botched efforts for Remain must have.

But so what. Even Corbyn’s greatest supporters don’t rate him as a statesman. They like him because he believes in something. Not just something (after all, Farage believes in something: he believes in a bleached white endless village fete with rifle-toting freemen at the gates) but the right things. Socialist things. Non-Blairite things. The things they believe in. And the one thing that the EU referendum campaign should absolutely put the lie to is any image of Corbyn as a politician of principle – or one who shares his party’s values.

He never supported Remain. He never wanted Remain to win, and every gutless performance showed that. Watching his big centrepiece speech, anyone not explicitly informed that Labour was pro-Remain would have come away with the impression that the EU was a corrupt conglomerate that we’re better off out of. He dedicated more time to attacking the institution he was supposed to be defending, than he did to taking apart his ostensive opposition. And that’s because Leave weren’t his opposition, not really. He has long wanted out of the EU, and he got out.

It is neither good nor decent to lead a bad campaign for a cause you don’t believe in. I don’t think a more committed Corbyn could have swung it for Remain – Labour voters were firmly for Remain, despite his feeble efforts – but giving a serious, passionate account of what what the EU has done for us would at least have established some opposition to the Ukip/Tory carve-up of the nation. Now, there is nothing. No sound, no fury and no party to speak for the half the nation that didn’t want out, or the stragglers who are belatedly realising what out is going to mean.

At a vigil for Jo Cox last Saturday, a Corbyn supporter told me that she hoped the Labour party would now unify behind its leader. It was a noble sentiment, but an entirely misplaced one when the person we are supposed to get behind was busily undermining the cause his members were working for. Corbyn supporters should know this: he has failed you, and will continue to fail you as long as he is party leader.

The longer he stays in office, the further Labour drifts from ever being able to exercise power. The further Labour drifts from power, the more utterly hopeless the prospects for all the things you hoped he would accomplish. He will never end austerity. He will never speak to the nation’s disenfranchised. He will achieve nothing beyond grinding Labour ever further into smallness and irrelevance.

Corbyn does not care about winning, because he does not understand the consequences of losing. That was true of the referendum, and it’s true of his attitude to politics in general. Corbyn isn’t an alternative to right-wing hegemony, he’s a relic – happy to sit in a glass case like a saint’s dead and holy hand, transported from one rapturous crowd of true believers to another, but somehow never able to pull off the miracles he’s credited with.

If you believe the Labour party needs to be more than a rest home for embittered idealists – if you believe the working class must have a political party – if you believe that the job of opposing the government cannot be left to Ukip – if you believe that Britain is better than racism and insularity, and will vote against those vicious principles when given a reason to; if you believe any of those things, then Corbyn must go. Not just because he’s ineffectual, but because he’s untrustworthy too.

Some politicians can get away with being liars. There is a kind of anti-politics that is its own exemplum, whose representatives tell voters that all politicians are on the make, and then prove it by being on the make themselves and posing as the only honest apples in the whole bad barrel. That’s good enough for the right-wing populists who will take us out of Europe but it is not, it never has been, what the Labour Party is. Labour needs better than Corbyn, and the country that needs Labour must not be failed again.

Sarah Ditum is a journalist who writes regularly for the Guardian, New Statesman and others. Her website is here.