Mon 8 Oct 2018, 13:31 PM | Posted by editor
LETTER from Mark Langabeer, Newton Abbot CLP, personal capacity.
A Tonight programme, broadcast on the ITV 1 channel last week provided an insight into the causes of Britain’s property crises. It reported that the Government intends to spend a further £2billion on social housing. However, this additional spending starts in 2021 and the current housing shortage is estimated to be around 4 million homes.
One in five now rent privately and with house prices in excess of eight times average income, home ownership is in decline. A spokesperson for the charity, Shelter, stated that the main reason for homelessness, was the eviction of tenants in the private rented sector. Under pressure, the Government has agreed to support assured tenancies for up to 3years.
This change in direction, largely as a result of the 2017 General Election, does not resolve the problem of a lack of affordable homes to rent or buy. The refusal of successive Governments to allow local authorities to borrow has been a factor, but not the main reason for the current housing crises.
It attributed the cost of land for development as the main reason for the lack of affordable homes. The programme traced the problem back to a change in the law in 1961. Land value could be increased by what value it could hope to achieve in the future.
A contributor explained that the cost of land is increased by the infrastructure, ie roads, schools and hospitals. This is done largely by the state, financed by all of us. Land is the main cost in construction and it is the reason why high-rise luxury apartments are popular with developers and construction companies, as this rakes in the biggest profit margins.
The programme reported that land value had quadrupled since 1995 and has been bought up by the banks, offshore investors and speculators. The total net profit has been estimated at around £13billion. Not bad for doing nowt!
Although the programme highlighted some of the reasons for the housing crisis, it gave no solutions. The spokesperson for Shelter suggested that housing policy should be rebalanced in favour of affordable homes. The broadcast gave no alternative policy and in my opinion only a socialist housing policy can solve this crises.
Labour should commit to public ownership of the banks and large construction companies. A Labour Government must use compulsory purchase to obtain land in order that affordable homes are available to all.
