Originally written as a column for Inside Housing.
So, after 10 years of redistribution and socialism under David Cameron, Theresa May and Boris Johnson, now we know what a proper Conservative government looks like.
The biggest package of tax cuts seen in 50 years will cost a cool £45bn and overwhelmingly benefit the highest earners: someone on £1m a year will be around £55,000 better off next year.
The benefits get progressively smaller the less you earn: someone on £20,000 a year will gain just £218 while someone on £200,000 will gain £4,333.
And there is nothing so far for the very poorest: no more help for renters and no boost to Universal Credit.
Instead around 120,000 claimants face having their benefits cut unless they find more part-time hours from January.
There may be some announcements still to come in an actual Budget to follow this Growth Plan, including vital decisions on whether to unfreeze Local Housing Allowance and the benefit cap, but the contrast could hardly be more stark.Read the rest of this entry »
So now we know. The way to tackle the affordability crisis is to pretend that it does not exist.
There is no official confirmation yet but the clear message from the Conservative Party conference is that radical planning reform and the attempt to force through new housebuilding in the least affordable parts of the country are both dead.
In their place are vague assurances that building more homes in the North will help both to level up the country and take the pressure off the South East.
It was there front and centre in Boris Johnson’s invitation in his conference speech to:
‘Look at this country from the air. Go on google maps, you can also see how much room there is to build the homes that young families need in this country, not on green fields, not just jammed in the South East, but beautiful homes on brownfield sites in places where homes make sense.’
The prime minister still talked about ‘fixing the broken housing market’ but that is no longer a goal to be achieved by building more homes in expensive areas but a means to a different end:
‘Housing in the right place at an affordable price will add massively not just to your general joie de vivre but to your productivity. And that is how we solve the national productivity puzzle by fixing the broken housing market by plugging in the gigabit, by putting in decent safe bus routes and all other transport infrastructure and by investing in skills, skills, skills and that by the way is how we help to cut the cost of living for everyone because housing, energy, transport are now huge parts of our monthly bills.’
There was more in the same vein and some guff about ‘the dream of home ownership’ but you get the picture. Needless to say he had nothing to say about fixing parts of the market that are most broken for tens of thousands of leaseholders stuck in dangerous and defective flats.Read the rest of this entry »
Originally posted as a blog for Inside Housing on June 19 – updated June 21.
Beneath the surface of a Conservative leadership battle dominated by Brexit and Boris Johnson there is a battle of ideas about the future direction of Conservative housing policy.
Put at its simplest, the battle is about whether to continue in the pragmatic direction signalled by Theresa May since 2016 or go back to the more ideological one taken by David Cameron before then.
But scratch a little deeper there are more fundamental debates going on about how far to go in fixing a housing market that most Tories agree has turned into an electoral liability for them.
Key questions such as how far the government should go in borrowing to invest in new homes and intervening in the private rented sector and the land market are back on the Conservative agenda.
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).
The optimist in me hopes that Ed Miliband’s launch of Labour’s independent housing commission marks the start of a political arms race on housing ahead of the next election.
In this scenario, his target of 200,000 homes a year by 2020 and eye-catching policies to achieve it will strengthen the hand of the pro-development wing of the Conservative Party and mean that whoever wins the next election will have a serious crack at tackling the supply crisis.
The pessimist in me worries that I’ve seen little so far that suggests the target is achievable (see Colin Wiles on this last week) and that the two policies that have made the headlines won’t work except in the sense of strengthening the hand of the Tory nimbys.
Read the rest of this post on Inside Edge, my blog for Inside Housing