Is this renting’s watershed moment?

The problems of "Generation Rent" seem finally to be getting some political attention, but without more homes being built, renting will continue to boil over.

In a week that a parliamentary inquiry begins into the state of private renting, and official statistics confirm the seismic growth of Generation Rent, it’s starting to look like rental Britain is beginning to get the political attention it deserves.

More than nine million people now rent from a private landlord. With hundreds of thousands priced out of home ownership and unable to access social housing, renting is fast becoming the new normal. And figures this week finally confirmed that for the first time since the 1960s, more people rent their homes from a private landlord than from a council or housing association. More and more of us now understand the frustration of paying hundreds of pounds each month in "dead money" to landlords, for a home that we can’t make our own.

Last week, Shelter’s Rent Trap report painted the latest bleak picture of life for Generation Rent. While wages stagnate, rents are up in 83 per cent of the country; on average, renters are paying out £300 more each year. In some areas, that rises to more than £1,000 a year – and that’s on top of rents that are already higher than mortgage costs.

This is the rent trap: people can’t afford to buy, so are stuck paying high rents, leaving them with little left over for anything else - half have less than £100 after rent and bills. This means they’re not able to save enough for a home of their own - leaving them facing yet another year of renting. As homes remain increasingly unaffordable, this trap sucks in ever more young people who know that the dream of a place of their own is slipping away.  

But the rent trap isn’t just a social issue; it’s an increasingly political one too. Renters are an ever-larger political constituency, with many closely resembling the archetypical middle income voter. And for voters in marginal constituencies, renting is a bigger issue than ever.

Our report found that the cost of renting has increased substantially in a number of key electoral battlegrounds – meaning that prospective MPs will need to become more familiar with the realities of renting if they want to win or keep these seats. Renters in Solihull - a Lib/Con marginal - are paying almost £400 a year more in rent; Lab/Con marginal Thurrock saw rents increase by almost £300; and three way marginal Hampstead and Kilburn rents are up by more than £800. The subject of the newest by-election tussle – Chris Huhne’s Eastleigh seat – saw rents rise by 3.2 per cent over the past year – more than twice as fast as wages. Some might say: does it matter if people rent? It’s commonplace in Germany, and people seem perfectly happy renting there. Should we be worried about this trend?

The trouble is that renting in England isn’t set up to play the kind of role that it plays in Germany and other developed countries. Renting was deregulated in 1989 to provide flexibility for a mobile workforce – the Assured Shorthold Tenancy was introduced and 6-12 month contracts became the norm. Politicians at the time envisaged lots of young people moving around for work before they settled down, bought a home and had kids.

But that’s not the role that renting is playing now. A major part of the growth of renting in recent years has been from families with children – some 1.3 million families now rent. For these families, renting isn’t working. They’ll typically have short contracts, after which they can be asked to leave for any reason, or their rent can be increased with no upper limit. That’s far from ideal when you’re feeling financially squeezed – or when your children are starting a new school year without being sure of where they’ll be living come the summer holidays.

For years, successive governments have tinkered around the edges on renting. Politicians recognise that most don’t want to rent for the long term, so have focused on helping people into homeownership: guaranteeing 95 per cent mortgages, expanding shared ownership schemes. But these schemes aren’t going far enough – and this leaves families stuck in rented homes with no reassurance from government that things will ever improve.

It seems that some politicians are beginning to wake up to the new reality of renting. Boris Johnson has said he intends to pilot longer tenancies in London, and Conservative newcomer Jake Berry has made the case for them too. Meanwhile, Ed Miliband and Labour’s Shadow Housing Minister, Jack Dromey, have spoken about more widespread measures to make longer term contracts the norm, and called an Opposition Day debate on the issue in January.

This week, a Select Committee began sitting for an inquiry into the private rented sector, and Shelter gave oral evidence on Monday, telling the stories of the thousands of people who come to us for help with renting problems.

In the short-term, government needs to tackle the reality of rental Britain, because every indication shows that it’s here to stay. We’ve proposed the Stable Rental Contract: a five-year tenancy with predictable rent increases, which will give renters the certainty they can keep their children in a local school and plan their finances, while also helping reduce the risk of empty periods for landlords.

It’s good news that politicians are beginning to up their game – but they have to translate words into action, as voters will hold them to account. The truth is that the efforts of successive governments have not gone far enough in helping people on ordinary incomes get a decent, stable, affordable home.

The government needs a much bolder plan of action for helping people achieve this basic aspiration. The bottleneck of supply and demand is worsening. Without more homes being built, renting will continue to boil over. Rents will continue to rise; people will struggle even harder to put money aside; the dream of a home of their own will continue to slip away.
 

More than nine million people now rent from a private landlord. Photograph: Getty Images

Robbie de Santos is a policy officer at Shelter.

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.