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POLITICAL PARTIES THE HOUSING CRISIS

With decent housing increasingly beyond most people’s reach, LIZ DAVIES sizes up what the different parties are offering voters

SHELTER says that house prices are now almost seven times average incomes. Repossessions are increasing. Private rented accommodation is often the only option, whether suitable or not.

One-third of private rented homes in England fail to meet the Decent Homes Standard and rents are increasing significantly faster than inflation.

Social housing was originally seen as a right to a decent home, for anyone, regardless of income.

As more than 1.5 million houses were lost from social housing stock due to right to buy, social housing became a sought-after safety net, earmarked for the most vulnerable.

Nowadays, the most vulnerable are often excluded from social housing.

Since 2012, when the coalition government massively increased the amount of discount available, sales of council homes under right to buy have increased 10-fold.

Many homes bought under right to buy were sold to private landlords, who let them out charging expensive market rents.

Over 50,000 homeless households a year are assisted by local councils in England, although that figure does not include people who have no hope of council assistance and might end up sleeping rough.

In December 2014 there were over 61,000 households in temporary accommodation in England.

For the sixth-wealthiest country in the world, our housing crisis is a national scandal.

What are the political parties saying?

Unsurprisingly both the Tories and Ukip believe that the market will solve everything.

The Tories’ big bribe to the electorate is to extend right to buy to housing association tenants.

They claim that they will replace the social homes lost — a promise previously made and broken.

Barely one in 10 of council homes sold since 2012 have been replaced.

Extending right to buy to housing association tenants makes it ever more unlikely that homeless households, or families trapped in expensive private rented accommodation, will achieve a secure, affordable home.

Nick Matthews tore the policy apart in the Star on April 16 (First time a tragedy, second time a farce). I wonder how legislation can force private companies, which are not publicly owned, to sell their assets.

The rest of the Tories’ housing policy is principally focused on assisting demand — not something a believer in the free market should do.

There is a commitment to build more homes, including 200,000 homes for first-time buyers, but no details on how. The Tories ignore the cost of private renting, and the huge housing benefit bill that subsidises private landlords.

Ukip’s supply-side policy is to encourage use of empty homes and building on brownfield sites.

It claims that, on the demand side, access to social housing by foreign nationals should be restricted.

In fact, the only foreign nationals who are entitled to apply for social housing are those who live and work in Britain on a long-term basis, or are refugees, and so they can apply for social housing and queue as British nationals do. They cannot queue-jump.

Ukip’s proposals are xenophobic, against both EU and British law and would barely scratch the surface of the housing crisis.

The Labour Party commits to 200,000 homes being built a year. A “use it or lose it” power for local authorities will prevent developers from maintaining empty land.

A three-year fixed-term tenancy in the private rented sector will give private tenants some security and fixed levels of rent.

The “causes of homelessness” and rough sleeping are to be tackled, but how is left unanswered. While right to buy won’t be extended, it won’t be abolished either.

In a Ukip-like tone, EU migrants will not be able to claim benefits — or presumably apply for social housing — until they have been in Britain for two years. 

Labour would also introduce the “mansion tax” for properties worth £2 million or more.

Both the Labour Party and Ukip will abolish the bedroom tax.

The Liberal Democrats aim to build 300,000 homes a year. Local authorities will have more freedom to borrow, so as to allow more social housing.

Right to buy will be “devolved” so a progressive local council could choose not to implement it.

Some abuses in the private rented sector will be tackled — tenants charged fees by lettings agents, extending licensing of private landlords.
There is a vague reference to encouragement of a “multi-year tenancy” in the private rented sector.

The problem here is that private landlords can already grant tenancies for more than one year. Most choose not to.

It is hard to see how “encouragement” is going to make any difference.

The Green Party moves away from market solutions, blaming “a misplaced faith in the market as the way to meet housing needs” along with right to buy, a lack of investment in public housing and an insecure and expensive private rented sector for causing the housing crisis.

There are detailed measures that might reduce house-price inflation. An innovative idea is “right to rent.” This means home-owners in financial difficulties can ask the council to buy their home and rent it back to them.

Over 500,000 social rented homes will be built between 2015 and 2020. Right to buy and the bedroom tax will be abolished.

The Greens want five-year fixed tenancies in the private rented sector and rent control linked to inflation.

Rent controls would reduce the housing benefit bill, besides giving tenants security.

The left parties — Communist Party of Britain, Trade Union and Socialist Coalition and Left Unity — are all committed to ending the bedroom tax, ending right to buy and other sales of social homes and instead building more social homes. Neither the CPB nor Tusc deal with the private rented sector.

Left Unity would reintroduce rent controls and security of tenure. It would also use compulsory purchase powers to take over empty homes and would end the criminalisation of squatting.

It is indicative of our narrow political system that none of the political parties, except the Green Party and the left, recognises what a dreadful mistake reliance on the market was.

The market has led to exorbitant house prices and soaring private rents. It would be wonderful if a mainstream political party said “housing is too important to be left to the market; in a rich country, everyone has the right to a safe, secure and affordable roof over their head and, as a society, we will invest in housing like we invest in health.”

  • Liz Davies is a barrister specialising in housing rights and homelessness law. She is a member of Left Unity and writes this column in a personal capacity.

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