Don't fear Facebook, pity it. It's a datavore with no data

Facebook can draw inferences from your likes. But who has any likes anymore?

Our very own Helen Lewis has a piece in today's Guardian where she throws cold water on the fears that Facebook's users were giving away more than they meant to by liking pages. She writes:

Dig a little deeper and some of this soul-scrying voodoo becomes slightly less terrifying. One of the TV-show likes that's a predictor of female homosexuality is The L Word – a drama about lesbians. Two of the pages associated with being a gay man are Wicked the Musical (no comment) and the No H8 campaign, which advocates equal marriage. I'm sure you could guess my gender from my self-declared love of Jane Austen and the history of fashion on Facebook. Or you could just look at my name.

But there's a bigger reason why we oughtn't be that concerned: who the hell clicks "like" anymore?

Facebook is designed to be used in a way that corresponds with the actual use patterns of fewer and fewer of its members. Even "active users"—its new preferred metric, since the total number of registered users is now limited by the population of the earth—may not be active the way it likes us to be.

The perfect Facebook user checks in whenever they go somewhere; they like the pages of all their favourite bands, movies, TV shows, and even their dentist; they tell Facebook where they work and went to school; they visit other sites through apps on Facebook; and they never, ever change their privacy settings from the default.

Does that describe you? Does that describe anyone?

The fact is that for an increasing number of people Facebook is basically a glorified webmail service. There's still a lot of money to be made in that—targeted ads served against keywords culled from your messages and events is the reason why Google runs Gmail, for instance—but not enough to justify Facebook's market cap, and certainly not as much as Mark Zuckerberg would like.

The company's been big at giving users new ways to get data out of Facebook, such as redesigning its news feed and introducing Graph Search; but it has yet to touch on any changes which would make people more likely to put data in. As Buzzfeed's John Herrman writes, Facebook "is demanding more and more of a graph that is able to provide less and less."

The real problem we all face isn't that the information we put out on the internet might be used against us. Despite looking like it was going to be ubiquitous, the fad for documenting every aspect of one's life is dying off. Foursquare has pivoted to be about providing data, rather than encouraging check-ins; Instagram, which provides ephemeral, context-free images, was poised to overtake Facebook as the leading photo service on line (until it became Facebook); and when was the last time you "liked" something?

We don't have to worry about what we put out on purpose; the problem is what we put out without knowing. It's not scary if Facebook can tell you're gay because you choose to like certain pages; it's more concerning that Google can tell your age because of your search habits; and it's downright worrying that Target can find out a teenage girl is pregnant before her own father based on what she buys.

If you choose what data to share, you are probably not too concerned about the inferences that can be drawn from it. But very little of what we share is done voluntarily these days; and as Facebook struggles to get us to give it the information it wants, they too may start taking it from us without asking. That's when it gets more concerning, because that's when it gets harder to fight.

Photograph: Getty Images.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.