THE BLOG

Housing Policies Which Should Make Us All Worried

06/01/2016 14:02 GMT | Updated 06/01/2017 10:12 GMT

I was on record as being critical of the new house-building record of the last Labour government, but at least they could point to the huge Decent Homes' programme that ensured 1.4million homes were made fit for the 21st century. Without that significant investment the housing crisis would be even worse than it is.

The five years of failure with the coalition saw rising homelessness, falling home-ownership, escalating rents, deep cuts in investment and the lowest level of house-building since the 1920s. Even in its worst-performing year, Labour built more homes than in the coalition's best year.

Now with the election of a Tory majority government we see a fundamental shift in policy. A complete withdrawal of all Government funding for the provision of new social housing and the transfer of all resources to deliver 200,000 so called starter homes during this Parliament.

Not merely is there is to be no government investment in council or housing association homes to rent but the discount for housing association tenants who are to be given the right-to-buy is to be funded by forcing councils to sell the highest valued council homes as they become vacant. Forget the image of some large penthouse flat in Westminster, in most of England this simply means the selling off of the few remaining, good family, semi-detached houses that are still council-owned.

Then there are the starter homes; not new building at all but replacing the rented homes previously built as part of section 106 agreements with developers. In the past 10 years 250,000 new rented homes have been built in this way, funding which the government will now end.

So with no money for new rented homes the message to those tenants in council flats - ordinary working families who don't earn enough to buy - will be just forget the transfer you've been waiting years for . For those waiting for their first council or housing association property the wait could literally go on for ever.

Then, for the diminishing number of council and housing association tenants, there will over time be pressure to increase rents to bring them in line with 'market rents'. There is a mythology of 'subsidised council rents'. The problem is not that council rents are too low, it is that private rents are too high.

For those fortunate enough to get a new council or housing association property the Government now propose to take away their security. Even if you have been a brilliant tenant who has always paid the rent on time, kept the home and garden in good repair and been the best neighbors anyone could imagine you could be forced out after a maximum of five years.

This is not just an attack on people's homes it actually undermines the ideas of neighborhoods and communities where people put down roots. It disrupts family life. If you have to move home your children have to move school.

Taken together these measures amount to the end of social rented housing as we have known it. Housing in which many of us grew up, affordable, secure, with family stability and good communities.

So what is the Government's plan to deal with the housing crisis?

A few weeks ago David Cameron proclaimed his intention to deliver one million new homes this parliament. Yet, within weeks, my questions to the Housing Minister confirmed that this wasn't a promise, not even a goal or a target, but 'an ambition' which looks increasingly unrealistic.

In practice the plan means owner-occupation for those who can afford it - perhaps 60% of households - and private renting for almost everyone else.

Who can complain about an aspiration for owner-occupation? Certainly not me. Yet the housing charity Shelter has calculated that the government's so-called 'starter homes' will require an income an income of £50,000 and a deposit of £40,000 outside of London, and an income of £77,000 and a deposit of £98,000 in London.

Each and every day these housing policies mean that more and more young people will never reach the first rung of the ladder. Housing and land prices continue to rise faster than general inflation. Far from getting those prices down the intention will be to subsidise them for some. Meanwhile, the big house-builders sit on 600,000 plots with planning permission.

So, what are the prospects for the new households - who will not be able to climb on to the ownership ladder? For some private renting will be an acceptable and adequate alternative. For others especially families with children it will be years of struggling to pay ever rising rents in sub standard accommodation with no certainty where you will be living in a few months time.

My forecast is by the end of this Parliament there will be a lower percentage of homes that are owner occupied, there will be fewer social rented properties, there will be more insecurity and pressure on family budgets and we won't have built the million homes the Prime Minister promised.

We should all be very worried.

Clive Betts is the Labour MP for Sheffield South West and chair of the Communities and Local Government Select Committee