Originally posted on July 5 on Inside Edge 2, my blog for Inside Housing
Bring it on. We are determined take you on. Who do David Cameron and George Osborne have in mind?
If you haven’t seen it yet, you need to read their op-ed in Saturday’s Times on ‘Here’s how to build a homeowning Britain’. They mean England of course. You can read extracts on the Number 10 website but that only gives a flavour of the full article so I’ve posted it here.
Ahead of the Budget, they promise that ‘a shake-up of inheritance tax and crackdown on nimby councils will give young people a foothold on the property ladder’. It is not just an explicitly, distinctively Conservative vision for housing but also a declaration of war against anyone opposed to that vision. Here’s my take on the key points:
‘Having your own place is an important stake in our economy. It’s also one of the best expressions of the aspirational country we want to build, where hard work is rewarded.
‘It’s also about social justice. We don’t want this to be a country where if you’re rich you can buy a home, but if you’re less well off you can’t. We want it to be One Nation, where whoever you are, you can get on in life.’
Here’s how to build a home owning Britain
David Cameron and George Osborne
A shake-up of inheritance tax and crackdown on nimby councils will give young people a foothold on the property ladder
At a time of uncertainty abroad, here at home we will be delivering a budget next week with economic stability at its heart, offering security for working people.
Encouraging home ownership is central to that. Having your own place is an important stake in our economy. It’s also one of the best expressions of the aspirational country we want to build, where hard work is rewarded.
It’s also about social justice. We don’t want this to be a country where if you’re rich you can buy a home, but if you’re less well off you can’t. We want it to be One Nation, where whoever you are, you can get on in life.
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If the opening salvoes are anything to go by, we are in for a long battle in the House of Lords over the right to buy.
The Conservatives do not have a majority in the Lords. By convention peers do not vote against legislation that was in the government’s manifesto but that still leaves plenty of room for amendments. It’s also hard to see how the government could claim financial privilege to reverse Lords amendments, as it did with the Welfare Reform Act.
Tuesday’s debate was only a short one on that bit of the Queen’s Speech but it was also a preview of the key themes that will be debated over the next few months and some of the key peers who will be making the arguments.
So it turns out that the winners in the ‘the housing election’ are upmarket estate agents and housebuilders.
The soaring share prices of firms like Berkeley Homes and Foxtons this morning may be as much about Labour defeat as Conservative victory. Take the mansion tax and moves against non-doms out of the equation and prices of expensive London homes are set to go on rising along with the profits of the firms that trade in them.
The mood could hardly be more different in a housing sector facing up to an unexpected Conservative overall majority that changes all the pre-election calculations about the right to buy (it won’t happen under a coalition) and huge cuts in social security (another party will block them).
It’s been a tough job with so many to choose from but here are my 10 worst housing policies of the election campaign.
As we prepare to go to the polls, here are a few final reminders of what’s on offer:
1) We’re not going to tell you (Conservative). With extra points for repeated appearances, the Tory refusal to spell out where £12 billion of cuts in benefit spending will come from takes top spot. I first blogged about this before the short campaign began and we’ve learned little more apart from a pledge (sort of) to protect child benefit. Within hours of Iain Duncan Smith telling the BBC yesterday that ‘the work hasn’t been done yet’ on the specifics, The Guardian was publishing leaked documents with DWP proposals including increasing the bedroom tax and cutting housing benefit completely for the under-25s.
2) Exempt main homes worth to £1 million from inheritance tax (Conservative). Brilliant! A tax cut for the very well housed (aka bribe for Tory voters) that will further establish inheritance in its rightful place as the main route into home ownership.
3) Extend the right to buy to housing association tenants (Conservative). Yes, it’s true we’ve tried this before and had to drop it. Yes, forcing charities to sell their assets is a bit iffy. But trust us now we’ve found a way to pay for it: forcing councils to sell their best stock. All the homes sold will be replaced one for one, honest. What’s that you say? It doesn’t stack up? Sorry, we seem to be running out of time for questions on this one.
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