Tuesday 21st May
Many many years ago, when I was standing as a councilor in Finchley, an old Labour stalwart told me that the most pressing problem for ordinary people was housing. And he was right, and he still is right. As we drive around the villages surrounding Walton we see hundreds of ex-council houses, decent semi’s with large gardens and big rooms. I grew up in a council house in Stowmarket and it was really nice; 3 bedrooms, large kitchen and sitting room and we were quite happy there. The rent was quite low too. Councils long ago gave up building decent houses, the best that can be managed today are tawdry flats.
The policy of selling council houses certainly helped those lucky individuals who were living in one at the time, but it has been a disaster as a long term policy. The private market is facing another possible bubble, and while it makes house owners a bit wealthier it simply spells misery to those who are forced to rent, as prices rise faster than their savings. Over the last fifty years house prices have, with a few dips, far exceeded inflation, and now have reached the ridiculous height of a half a million pounds for the average London house. Who can possibly afford these properties; overseas buyers, speculators, people who already own a house for four hundred thousand – well certainly not first-time buyers, still living with their parents or paying extortionate rents.
And this is on the back of the Governments new Mortgage Guarantee Scheme, and ridiculously low interest rates; a perfect storm for another crash a few years down the line. The answer is not to increase debt, either by Government or banks to individuals, this will only push prices higher, but to build more houses. It was true in the early Seventies and it is true today. Build lots of decent cheap housing for rent or purchase and you will make people happy, rather than a few people getting rich on the backs of the next generations struggles. It would also help the economy, stupid.