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As long as the Tories fail to solve the housing crisis, they will struggle to win

The fall in the number of homeowners leaves the Conservatives unable to sell capitalism to those with no capital. 

For the Conservatives, rising home ownership was once a reliable route to government. Former Labour voters still speak of their gratitude to Margaret Thatcher for the Right to Buy scheme. But as home ownership has plummeted, the Tories have struggled to sell capitalism to a generation without capital. 

In Britain, ownership has fallen to 63.5 per cent, the lowest rate since 1987 and the fourth-worst in the EU. The number of private renters now exceeds 11 million (a larger number than in the social sector). The same policies that initially promoted ownership acted to reverse it. A third of Right to Buy properties fell into the hands of private landlords. High rents left tenants unable to save for a deposit.

Rather than expanding supply, the Tories have focused on subsidising demand (since 2010, housebuilding has fallen to its lowest level since 1923). At a cabinet meeting in 2013, shortly after the launch of the government’s Help to Buy scheme, George Osborne declared: “Hopefully we will get a little housing boom and everyone will be happy as property values go up”. The then-chancellor’s remark epitomised his focus on homeowners. Conservative policy was consciously designed to enrich the propertied.

A new report from the Resolution Foundation, Home Affront: housing across the generations, shows the consequences of such short-termism. Based on recent trends, less than half of millennials will buy a home before the age of 45 compared to over 70 per cent of baby boomers. Four out of every ten 30-year-olds now live in private rented accommodation (often of substandard quality) in contrast to one in ten 50 years ago. And while the average family spent just 6 per cent of their income on housing costs in the early 1960s, this has trebled to 18 per cent. 

When Theresa May launched her Conservative leadership campaign, she vowed to break with David Cameron’s approach. "Unless we deal with the housing deficit, we will see house prices keep on rising," she warned. "The divide between those who inherit wealth and those who don’t will become more pronounced. And more and more of the country’s money will go into expensive housing instead of more productive investments that generate more economic growth."

The government has since banned letting agent fees and announced an additional £1.4bn for affordable housing – a sector entirely neglected by Cameron and Osborne (see graph below). Social housing, they believed, merely created more Labour voters. "They genuinely saw housing as a petri dish for voters," Nick Clegg later recalled. "It was unbelievable." 

But though housebuilding has risen to its highest levels since 2008, with 164,960 new homes started in the year to June 2017 and 153,000 completed, this remains far short of the 250,000 required merely to meet existing demand (let alone make up the deficit). In 2016/17, the government funded just 944 homes for social rent (down from 36,000 in 2010). 

In a little-noticed speech yesterday, Sajid Javid promised a "top-to-bottom" review of social housing following the Grenfell fire. But unless this includes a substantial increase in public funding, the housing crisis will endure. 

For the Conservatives, this would pose a great enough challenge in normal times. But the political energy absorbed by Brexit, and the £15bn a year it is forecast to cost the UK, makes it still greater.

At the 2017 general election, homeowners voted for the Tories over Labour by 55 per cent to 30 per cent (mortgage holders by 43-40). By contrast, private renters backed Labour by 54 per cent to 31 per cent. As long as the latter multiply in number, while the former fall, the Tories will struggle to build a majority-winning coalition. 

George Eaton is political editor of the New Statesman.

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Technology can change the world – provided we have a measure of democracy, too

You could say we need a technological revolution for the many, not the few. 

Over the last five decades, the American Consumer Technology Association’s annual jamboree has grown to become the world’s largest tech show: attracting over 190,000 visitors and 4000 companies, with 7,460 reporters filing 59,969 reports over the course of four days in Las Vegas. In the process, it has achieved an almost mythical status – from unveiling the first-ever home VCR (Philips 1970) to Bill Gates’ resignation from Microsoft in 2006, and has included cameo appearances by the likes of Jay-Z and Barack Obama.

As a fully qualified geek (Electrical Engineering degree, 20 years in tech – before it was cool) and the shadow minister for Industrial Strategy Science and Innovation, I couldn’t resist seizing the opportunity to venture to Las Vegas while on a family holiday to the US’ west coast; hoping, against all hope, to see the progressive future of a technology-enabled, more equal world.

If only.

But I did emerge with a renewed conviction that technology can solve our problems – if we use it to do so.

In some ways, the most remarkable thing about the International Consumer Electronics Show (CES) was the way it demonstrated how technology has taken over our entire world. CES was a car show in the middle of a health show, which happened to be around the corner from a home show, which was adjacent to a sports show that was next to an entertainment show. Just about every sector was represented.

Nissan had a huge stand for their new autonomous vehicle showcasing the ‘Brain-Vehicle Interface’, as did Philips for their new sleep enhancing devices, and Huawei for their connected home. In 2018, technology can be used as an enabling platform to aid just about everything. And in a world where near enough everything is politicised, technology is very political.

But this was not evident from CES: not from the stands, neither the keynotes, nor the participants. There were few speakers from civic society nor governments, and those politicians who attended – such as Donald Trump’s Transportation Secretary, Elaine Chao – talked only of their ‘excitement’ at the sunlit uplands technology could guide us to. The show existed in its own, largely self-sufficient world. While Ford created an entire street to show off its autonomous cars, there was no reference to who would pay for the road, pavements, lamp-posts and guttering if only robots worked.

And as a politician rather than an engineer, it is the societal impact that matters most to me. One realisation brought about by my visit is that I have greatly under-estimated the consequences of driverless vehicles: communications, parking, urban layout, and public transport are all likely to be deeply impacted. The automobile industry is working to position cars as your personal moving office-cum-front room-cum-hotel-cum-lecture theatre; where you can work, maintain personal and social relationships, unwind and learn – all while going from A to B. How will crowded, under-funded public transport compete?

At the show, Nissan launched its Brain-to-Vehicle technology, which reads the driver’s brainwaves to determine when the car’s intelligence should intervene. Although I'm personally unsure about the inclusion of brain surveillance in the driving experience, it may well be the next logical step as we increasingly give up our data in return for ‘free’ services. Certainly the anthropologists at Nissan argued that this was the very definition of assisted artificial intelligence.

Fortunately, autonomous vehicles are not the only way to get around. Improvements in battery technology mean that – between electric scooters capable of folding away into airplane carry on, and electric bikes with the power of motorcycles – personal mobility has become a market in its own right.

Personal health and sport were also big themes at the event. Philips has brought back the night cap, which not only looks far more fetching than the Victorian original, but is now also capable of lulling you gently into a slumber before monitoring the quality of your sleep. Orcam’s discrete camera-glasses for the visually impaired can read text and recognise people, whilst L’Oréal’s UV Sense is a sensor small enough to be worn comfortably on your fingernail that detects ultraviolet exposure.

One aspect of the show that has remained largely unchanged is its demographics. Whilst the glossy adverts on the walls depict women and BME people using technology, those actually designing it were, with a few exceptions, male and largely white. As always, there were no queues for the women’s loos and while there were not any ‘F1 girls’, the gender balance was improved largely by attractive women, who were not engineers, being employed to ‘explain’ technological advances.

Weeks later, the World Economic Forum Annual Meeting in Davos was also dominated by technology, which the Prime Minister used as a fig leaf to cover the absence of vision for Brexit. Lacking in both the CES and Davos, was any sense that the interests of the many had any significant stake in what was going on. We need a Labour government to help change that.

Chi Onwurah is the Labour MP for Newcastle upon Tyne Central, and the shadow minister for industrial strategy.