Traditional terraced properties in Greenwich on June 4, 2014. Photograph: Getty Images.
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Labour’s Help to Build scheme will succeed where the coalition has failed

By providing government guarantees to small construction firms we will kickstart housing supply. 

Today on a visit to a small builder in Kent, we outlined Labour’s proposal to boost small house-builders and help the next generation on to the property ladder. Our Help to Build scheme would underwrite bank loans to smaller housebuilders and unlock much-needed finance to get them building.

We’re in the midst of the biggest housing crisis in a generation. Families and young people are struggling to get on the property ladder. More and more people are living in the private rented sector which often doesn’t provide them the stability and peace of mind that they need. And if you’re on the waiting list for social housing then there are another 1.6 million households in the queue with you. The key driver of the crisis is that we’re simply not building enough homes. We're currently building less than half the number of homes we need to keep up with demand.

It’s true these housing pressures didn’t begin under this government - after all no government has built enough homes for 30 years. But things have certainly got much worse on this government’s watch. Under David Cameron, house building has fallen to its lowest levels in peacetime since the 1920s. Only today, we have learned that the government’s flagship housing policy, the New Homes Bonus, is redistributing money from some of the poorest Labour councils to the richest Tory and Lib Dem authorities, and is not delivering the homes communities need.

Labour can do better. We want more people to realise their dream of home ownership. But, unless we build more homes, property prices will rise further out of reach because supply cannot keep pace with demand. So today we are setting out our proposal to tackle the housing shortage by boosting small-builders by improving their access to finance.

Emerging findings from the Lyons Housing Commission, set up by Ed Miliband to deliver a roadmap to getting 200,000 homes a year built by 2020, show there is a need to increase diversity and competitiveness in the housing sector. Figures show that 25 years ago small builders were building two thirds of new homes. Now they're not even building a third of new homes. Over the same period, the number of firms building between one and 100 units has fallen from over 12,000 to fewer than 3,000.

What has caused this decline? The Federation of Master Builders (FMB) surveys of small house building firms have consistently shown that for these firms access to finance and land are the most significant barriers to growing their businesses and increasing the supply of new homes. In the FMB’s 2013 House Builder Survey, 60 per cent of house builder members cited access to finance as a major barrier to their ability to increase their output of new homes, more than any other factor.

That’s why earlier this year, Labour set out plans to increase access to land for SME builders. The next Labour government will require local authorities to include a higher proportion of small sites in their five year land supply. We will give guaranteed access to public land to smaller firms and custom builders. And we will guarantee that a proportion of the homes built in the next generation of new towns and garden cities will be built by smaller firms.

But we must do more. As Ed Balls said earlier this year, we need a Help to Build scheme that tackles the root cause of the credit crisis for SMEs. Our proposals would kickstart the supply of homes by providing government guarantees for bank lending to SME construction firms in a similar way to how the current Help to Buy scheme underwrites mortgages.

The Help to Buy scheme may increase access to mortgages but, when even Mark Carney, the Governor of the Bank of England, has warned about the risks to our economy of a lopsided housing market where housing demand hugely outstrips supply, it is clear the time is now right for a Help to Build scheme, using the strength of government guarantees to help increase the supply of affordable properties.

Labour’s Help to Build scheme will encourage small house-builders to deliver more homes, as well as stimulating the local economy and helping to prevent prices from spiralling ever further out of reach for young homebuyers. And we would lock in a series of stringent safeguards, such as a cap on the value of loans available for each development, to ensure the scheme is focussed on smaller builders, and the normal bank checks on construction firms' ability to repay.

This proposal alone will not solve the housing crisis. There is no one single proposal that can. That’s why our Housing Commission will report later this year, producing a roadmap of how we can reach our ambition of getting 200,000 homes a year built by 2020. But in the meantime, acting on this crucial issue will help get our small builders building again and it will begin to tackle the housing crisis which is leaving so many people without a decent home at a price they can afford.

Chris Leslie is shadow chief secretary to the Treasury; Emma Reynolds is shadow housing minister.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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