What is it about those vans?

Surely Cameron's modernising senses detect the toxic smell given off when a Tory Home Secretary runs a "migrants go home" campaign.

I can’t stop thinking about the vans. I don’t like them. I don’t like mobile billboards being driven around London – soon to be extended to other regions – urging illegal migrants to contact the Home Office for help with repatriation. That isn’t what I’ve been thinking about. Not liking the vans was instinctive. Arriving at that position didn’t take any cognitive time and that, in itself, bothered me. Unthinking reactions are an unreliable guide in politics and journalism.

So the question that has been occupying my thoughts is why don’t I like the vans?

Mark Harper, the immigration minister, has today written a defence of the vans in the Daily Mail. His argument is that there is no racist message or intent. The purpose of the policy is to spread the word to illegal migrants that help is at hand if they want to go “home”. (It is, of course, possible that they now consider the UK home but that isn’t what the minister means.)

I accept one important element of Mr Harper’s case. There is nothing intrinsically racist about a policy of repatriating people who are in Britain illegally, nor is it necessarily racist to encourage them to leave, advise them that help exists to facilitate the process and remind them that failure to do so puts them on the wrong side of the law. By definition, the policy is race blind. It covers a person’s legal status not their identity.

I depart from the minister’s analysis when he asserts that the only intended audience for this policy is the migrants themselves. He says if the evidence shows the vans aren’t having a positive impact on voluntary repatriations, they will be withdrawn. They will of course be withdrawn at some point anyway. No campaign runs forever.

I doubt that many illegal migrants are itching to make themselves known to the Home Office. The decision to come to the UK without official permission or to overstay a visa is driven by a combination of despair and economic rationality. Whatever it is that has been left behind has been left behind for a reason. Some go back. Others see no incentive to do so. The offer of government help is probably peripheral to that calculation. The element of the Home Office message that has the most communicative value is the picture of handcuffs. Its value is as a threat.

Illegal migrants don’t need a visual aid to tell them to fear the police. I think Mr Harper is being disingenuous. At least part of the intended audience for this campaign is people who are British, who think there are too many immigrants here and want some of them to leave. The posters are to reassure them that the government is on the case.

That still doesn’t make the vans racist. This is an old problem. Not everyone who wants less immigration is a racist but every racist wants less immigration. So it is hard to craft a message for the concerned non-racist without earning unwanted nods of approval from the racist. Hard. Not impossible. Clarity of intent is vital. The vans fail this test because they are unlikely to have a discernible impact on numbers, while certain to reinforce the impression that the nation is overrun with illicit foreigners. The government accepts the view of many voters that Britain is full to the brim with people who don’t deserve to be here. That assertion doesn’t always recognise a difference between legal and illegal status, nor between economic migration and political asylum. For the Home Office to drive around brandishing a pair of handcuffs is to abet the suspicion that there is something generically illegitimate about being foreign-born in the UK.

Halfway through his defence of the posters, Mark Harper makes the following assertion:

In some neighbourhoods, uncontrolled immigration has put intolerable pressure on our country’s infrastructure: on schools, housing, and the NHS.

There follows a reiteration of the government’s determination to reduce net migration. At no point does the minister indicate that he has stopped talking about illegal migrants and started talking about all the other people living, working and paying taxes in Britain who happen not to be British. The government defence of the vans, in other words, is that they are part of a wider strategy to get the numbers down. By implication, legals and illegals are different categories of the same scourge, defined as being foreign and over here – with the prescribed remedy being departure.

So what? I am second-generation British, born to foreign parents. I have liberal views on immigration. That puts me in a minority and governments are under no obligation to craft their policies to satisfy my prejudices. The vans aren’t aimed at me and they aren’t aimed at people like me. That I react badly to them might even be taken as a sign of their success. There are Tories who measure the effectives of their message by the volume of anguished cries in bien pensant cosmopolitan commentary. What I find intriguing is that David Cameron used not to be one of those Tories.

There is no need here to rehearse the whole “modernisation” argument again. The story of how Cameron tried and largely failed to decontaminate his party's problematic brand has been told often enough, including by me in these pages.

No-one any longer expects the David Cameron who is Prime Minister in August 2013 to say the same things as the David Cameron who was newly elected Tory leader in December 2005. His protean nature – what Labour calls unprincipled slipperiness – is in the price. Most Tory MPs accept that their leader is unburdened by ideological consistency. It should come as no surprise if now Cameron signs off on policies that, in a former incarnation, he would have resisted.

Yet there is something qualitatively different about those bloody vans. They are a gimmick that could hardly have been better designed to cause the maximum affront for the minimum policy outcome. The impact on net migration will be negligible; the ugliness of the message is palpable – at least to those attuned to the offence. And I suspect Cameron is one of those people. He could not, I believe, have played the role of modern “progressive” Conservative in the period 2005-07 as well as he did without some possession of the liberal sensibilities that go with the part. No-one can have studied the toxic miasma that hangs over Tory party immigration policy as thoroughly has he has and come away without knowing the obnoxious potential of a “sneaky migrants go home” campaign run by a Conservative Home Secretary.

I’ll wager that Cameron gets it. He gets exactly why some people viscerally hate those vans. He knows what it is that makes some of us recoil in disgust. I bet he can smell it too – and yet he holds his nose because he has calculated that the stench only chokes people who probably won't vote Tory anyway. That shows a capacity for cynicism that should be worrying in a leader even to people who admire the Conservative party's current immigration policy.

The Home Office's van. Photo: gov.uk

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Has Brexit burst the British housing bubble?

The fall in value of the pound is having a negative impact on property prices.

The high cost of housing in the UK has almost nothing to do with supply and demand. What matters is political control. Rents are high because landlords have gained the upper hand politically. The consequences are vividly illustrated in Ken Loach’s new film focusing on inequality in Britain, I’ Daniel Blake.  As a student in the 1980s I paid £9 a week to rent a room in a shared house in Newcastle upon Tyne. Private rent was low because for decades before then rents had been regulated. It was the lifting of that regulation that meant rents could rise so that now students have to borrow vast sums of money just to have a place to live. Today’s students pay many multiples more in rent than I ever did, and millions of families with children are also struggling because they have to rent privately.

Because rents have been allowed to rise as high as landlords can get away with, the landlords have been encouraged to buy up more and more properties that were once social housing or lived in by a family, who had bought the property with a mortgage. The number of people renting privately doubled between the last two censuses of 2001 and 2011. That has never happened before. It was the end result of years of deregulation and the withdrawal of our government from representing our interests in housing. Well-regulated private renting is a benefit, but without rent regulation it becomes a social evil.

Housing prices are not determined by supply and demand because you do not have a choice about needing to be housed. Allow an unregulated market to develop when social housing is also being cut and there is no choice not to buy what is on offer, other than sleeping on the streets. Prices will go sky-high. The purchase prices for mortgage borrowers also rise to astronomical levels as first-time buyers are competing with landlords to buy properties, and so have to be able to secure a mortgage equal to the amount a landlords can wring out of people desperate for a home.

In the first blog in this series on affordable housing published by Taxpayers Against Poverty, Stephen Hill, director of C2O Futureplanners, explained: “There are over one million less affordable homes than there were in 1980. The population has grown by nearly nine million people. Incomes at the median level are flat, and secure employment is increasingly scarce.” He is correct, but the situation is even worse than that — it is not lack of housing that is the problem. Each annual census in the UK records the amount of housing that exists at each point in time. It does this by recording the number of rooms in homes over a certain size. The number of rooms per person has risen at every census since 1981.

The 2011 census was the first to count bedrooms and found that in England and Wales there were 66 million for a population of 55 million (21 million of whom were married or in a civil partnership). So even if we make the ludicrous assumption that only married people share a bed and no children use bunk-beds, there were at least 22 million bedrooms empty on census night 2011. We have not been building a huge number of new houses or flats in recent years, but we have been adding extensions on to our existing homes and so we now have more housing than we have ever had before, per person and per family. We just share it out more unfairly than we have ever done before.

If housing prices were about supply and demand then our surplus of bedrooms would result in falling prices, but this is not a free market. You are not free to buy a flat that has been left empty in London to appreciate in value by its owner. They do not want to sell, or sometimes even rent it out, and you almost certainly would not have the money even if they did.

It is in the housing market that the majority of investments are made in the UK, housing is where most wealth is held. As we become more and more economically unequal it is through housing that we most clearly see that most of us are losers while just a few (who own multiple properties) are winners. Recent UK governments have been allowing wealth and income inequalities to rise and rise.

As Fred Harrison explained in the second blog in this series, government has not only withdrawn from regulating housing rents and profits to avoid this winner-takes-all-economics — it is now even prepared to provide £2bn to buy properties that home builders can’t sell so that they don’t need to lower prices even if landlords and first-time buyers will not buy their properties. The government sees renting-seeking as a social good, and believes that the market in housing should be regulated less and less with each year that passes, other than intervening to keep prices high and rising. Meanwhile, street homelessness rises, evictions rise, the debt of mortgage holders rises, housing prices rise and a small minority of the population become richer. So how will it end?

You might have thought that prices would stop rising when landlords stopped buying properties because the return on their investments in terms of rent would not making it worth their while paying, say, one million pounds for a three-bed house in a part of London near a tube station. Suppose that the most a family could pay was £20,000 a year in rent. The landlord’s “return” on their investment would only be two per cent a year, ignoring wear-and tear and anything else that they might be able to off-set against paying tax. If the forces that were actually at play were “supply and demand” then surely prices have to stop rising when people can no longer afford the rents?

However, landlords have another return: the escalating value of the property itself. If the property is rising by five per cent a year in value then they are making a seven per cent return when they rent it out, even if annual rents are just two per cent of its value. The rise of five per cent a year is due to speculation which is itself partly fed by a belief that the government of the day will do all it can to protect their investments, but it will only do that up to a certain point.

Because it needs to raise taxes a little given the state of the national finances, the UK government is now withdrawing its support of reckless profit taking by smaller landlords. In October 2016 a group of buy-to-let landlords lost their appeal in the courts to try to continue to be able to claim their mortgage interest payments as a business expense. From 2017 only the largest of landlords who set up companies to rent out their properties will be able to continue to do that.

The government knows that the housing market is in trouble. That is why Philip Hammond, the current Chancellor, announced that their “Help to Buy” scheme (which was aimed at the very best-off of potential first time buyers) will end in December 2016. The government knows that with the risk of falling house prices in future it cannot afford the guarantees that “Help to Buy” created. “Help to Buy” schemes were the previous Chancellor, George Osborne’s biggest spending commitment. They were designed to help inflate the housing market and keep prices rising, but eventually every speculative bubble has to burst.

On 21 September the first reports of a stalling market were released under headlines that included: “Q2 UK house sales at an all-time quarterly low says Land Registry”. UK Land Registry figures now show housing prices to have fallen in London by 7% so far in 2016, with the number of sales roughly halving. Investors have stopped buying; if a recent investor wants to sell they have to do so at a loss. Nationally prices fell by 4.5%.

So what happened to the magic-money-tree? In short the pound fell in value and it has been continuing to fall ever since the UK voted to leave the EU. There was always going to be “the event” that triggered the end of speculation and it is looking more and more likely as if Brexit was that event. Once the pound begins to fall in value then any overseas investor knows that if they buy property in the UK, even if its value in pounds does not fall, it will be worth less to them in future.

Suddenly UK housing is not a safe asset. Suddenly prospective landlords actually have to try to rely on their tenants’ rent to pay back their borrowings. Suddenly housing prices change despite no great alteration in supply or demand. Suddenly the whole edifice looks unsafe, not just for the majority of young and almost all poor people in Britain, but for the large majority of the population.

It was never “supply and demand” that determined our housing costs and profits. Relying on that belief did not result in greatly improved cheaper housing for most people, but it was easy to claim that somehow tomorrow would be better if we just left it to the market — until we left it to the ever more unregulated market for too long. Housing costs, prices and supply are determined by governments, including those that shirk their responsibilities and have too much concern for the economic fortunes of the affluent few.


This is part of a series of blogs on affordable housing published by Taxpayers Against Poverty. You can read others in the series on their website http://taxpayersagainstpoverty.org.uk/ or sign up to attend their seminar in Parliament on the 16th November here: https://www.eventbrite.co.uk/e/taxpayers-against-poverty-affordable-housing-seminar-tickets-28329123170