This is a humdinger of a book. Its author Liam Halligan – a cerebral Brexiteer rather than a flag waving, Rule Britannia supporter – exposes and then tries to solve – the biggest crisis facing the younger generation. They either can’t afford to buy their own home or haven’t a hope in hell if they are poor in getting social housing.
The huge hype in house and land prices – which is still going on despite the pandemic – is exposed in this book as part of deliberate policy by landowners and an oligopoly of huge house builders – to maximise profits, provide sub standard new homes and prevent any changes in planning laws which would release land for housing.
The government is committed to ” build, build, build” hundreds of thousands of new homes for the young generation who increasingly are having wait until they are 40, if they are lucky, to own their own home. Like many political promises this is unlikely to materialise under present government policies and he explains in graphic detail why this will not work.
Instead by subsidising buyers under the Help to Buy scheme they are fueling house price rises and only helping the better off – who also get help from the Bank of Mum and Dad – to acquire a home.
This well researched book shows that Attlee’s government had the idea of how to both build a lot of council housing and incentivise builders to expand home ownership. But both aims have been destroyed by successive governments -including the error under Tony Blair and Gordon Brown – not to build any council houses.
The current Tory promise is undermined by the fact – exposed in the book – that the party is hamstrung by its donors – many of whom are committed to making more money by keeping house prices high and building land rationed. The big builders have also gobbled up many of the small builders – the very people who have incentives to build homes fast – to strengthen their monopoly.
The result was in 2017 that Jeremy Corbyn garnered votes from the young frustrated at having to eke out of their lives in either overpriced rent sharing properties or stay at home with mum and dad while they were in their 30s. Now without Jeremy Corbyn around to scare the Tories, the government might think they can still get away with it.
Labour need to step up to this problem. They are not financed by landowners. One thing they shouldn’t do is take any notice of the Tony Blair Institute. The former PM’s chief policy maker actually believes there is no housing shortage. Ian Mulheirn is using Blair’s platform to peddle the idea and argue that we should not build hundreds of thousands of new homes. Presumably he is happy for the young to pay ever increasing rents or stay with their parents., The big builders and private landlords must love him.
What is good about this book is that the author also proposes solutions which are pretty radical and involve a major reform of planning legislation ,changes to the value of land and penalties for builders who just hang on to sites. And a major social housing programme as well. Well worth a read. If the Tories don’t act they risk alienating a whole generation.
Electoral rolls falling and Millennials head for Spain
I have added a couple of my own blogs that illustrate the results that the author hasn’t mentioned. One shows the declining electorate in central London because so many properties are going to overseas buyers and are used as AirBnB’s. The others show that if we are not careful this permanently rising market could be used for property developers to take over the care home market. The third is a very recent article in the i paper showing that the millennials are voting with their feet and helping fuel a Spanish property boom. Talented tech savvy young Brits are finding you can rent a whole villa in Marbella for the price of a crummy flat share in London and they are basing themselves there. The country is starting to lose vital young talent.