The housing crisis is worse than any of the parties are prepared to admit

Even a million new homes over five years won't be enough. The UK needs 1.5 million just to meet need.

In recent months, all three of the main parties have sought to demonstrate that they are responding to the housing crisis. Labour has pledged to build 200,000 homes a year by 2020 through the creation of new towns and garden cities. The Lib Dems have called for councils to be allowed to pool their borrowing limits in order to fund a major expansion of social housing. The Tories have launched Help to Buy, which, they claim, will stimulate supply as well as demand. 

But for some idea of the extent to which all parties are still underplaying the extent of the crisis, it's worth reading today's Policy Exchange report on the subject. As it notes, the UK needs a minimum of 1.5 million new homes from 2015 to 2020 simply to meet need, 300,000 a year. Around 221,000 new households are expected to be formed each year over this period and there is a significant backlog. Thus, even the target spoken of in Labour circles - a million in five years - falls short. As the report says, "1 million homes over five years, around 200,000 homes in England, is actually a failure to keep up with predicted housing need, which is itself likely to be an underestimate of housing demand. Indeed, such language is unhelpful in many respects, as both need and demand are to some extent arbitrary. A young person living at home with their parents but who wants to leave might be seen as having a 'demand' or 'need' for housing, depending on how this is defined. They are not homeless, but they want to move out."

If this government and the next are to even come close to meeting need, they will need to enable a dramatic expansion of both private and social housing. This will require further planning reform, action against landbanking and the removal of the cap on council borrowing (something that George Osborne, for entirely ideological reasons, has refused to do).  

But before solving the crisis, politicians will need to acknowledge its scale. In today's Evening Standard, one finds Grant Shapps boasting that Help to Buy will give Londoners "the homes they need" on the same day that DCLG figures showed that the net supply of housing rose by just 124,270 in 2012-13, a fall of 8% since 2011-12 and the lowest number since the series began in 2000-01. Help to Buy, which seeks to inflate demand, rather than supply ("Hopefully we will get a little housing boom and everyone will be happy as property values go up", George Osborne reportedly told the cabinet), will do almost nothing to change this. While in a better position than the Tories, Labour and the Lib Dems are still showing little of the ambition required. If an even greater number of families are not to be denied the basic right to housing, that must change - and soon. 

David Cameron is shown around the Egerton Green housing development in Altrincham, near Manchester on September 29, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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When Donald Trump talks, remember that Donald Trump almost always lies

Anyone getting excited about a trade deal between the United States and the United Kingdom should pay more attention to what Trump does, not what he says. 

Celebrations all round at the Times, which has bagged the first British newspaper interview with President-Elect Donald Trump.

Here are the headlines: he’s said that the EU has become a “vehicle for Germany”, that Nato is “obsolete” as it hasn’t focused on the big issue of the time (tackling Islamic terrorism), and that he expects that other countries will join the United Kingdom in leaving the European Union.

But what will trigger celebrations outside of the News Building is that Trump has this to say about a US-UK trade deal: his administration will ““work very hard to get it done quickly and done properly”. Time for champagne at Downing Street?

When reading or listening to an interview with Donald Trump, don’t forget that this is the man who has lied about, among other things, who really paid for gifts to charity on Celebrity Apprentice, being named Michigan’s Man of the Year in 2011, and making Mexico pay for a border wall between it and the United States. So take everything he promises with an ocean’s worth of salt, and instead look at what he does.   

Remember that in the same interview, the President-Elect threatened to hit BMW with sanctions over its decision to put a factory in Mexico, not the United States. More importantly, look at the people he is appointing to fill key trade posts: they are not free traders or anything like it. Anyone waiting for a Trump-backed trade deal that is “good for the UK” will wait a long time.

And as chess champion turned Putin-critic-in-chief Garry Kasparov notes on Twitter, it’s worth noting that Trump’s remarks on foreign affairs are near-identical to Putin’s. The idea that Nato’s traditional purpose is obsolete and that the focus should be on Islamic terrorism, meanwhile, will come as a shock to the Baltic states, and indeed, to the 650 British soldiers who have been sent to Estonia and Poland as part of a Nato deployment to deter Russian aggression against those countries.

All in all, I wouldn’t start declaring the new President is good news for the UK just yet.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.