Politicians would have us believe otherwise, of course, and housing looks set to be a key issue in the forthcoming election campaign. Now, the cynical way to look at this is to worry that the claims and counter-claims being made by each of the parties won’t actually move us any closer to solving some intractable difficulties. But it’s also possible to be more positive – we should be pleased that housing is finally getting the attention it deserves. We may not get to grips with the housing crisis over night, but all progress is welcome
The latest initiative, announced by David Cameron, is a case in point. If he’s re-elected, the Prime Minister is now promising to ensure that 200,000 cut-price homes on brownfield sites are made available to first-time buyers in England before 2020. That’s twice the size of a similar commitment he’d already made.
Critics rightly point out that there are some problems with the scheme. For example, the consensus is that Britain needs between 250,000 and 500,000 new homes each year to keep pace with demand, so this proposal still feels relatively modest. There are also suggestions it may hit the private rental sector, which so many people rely on. Plus with house prices still rising, first-time buyers will still need to find chunky savings to pay deposits, even on discounted prices.
Nevertheless, this scheme could make an appreciable difference to many buyers who can’t currently get on the property ladder. If you’re miles away from being able to buy for the first time, the Prime Minister’s initiative isn’t going to help, but if you’re close, this scheme could get you over the line.
Will this scheme make much difference to house prices? Well, possibly, at the margins. It should act as a restraint on prices at this end of the market, all other things being equal.
One important question is where these houses will actually be built. In principle, it is fine to talk about development of brownfield sites – especially as the Government plans to drop some of the restrictions that currently get in the way – but building will still have to be cleared by local authorities, which aren’t always willing to play ball.
And that’s the other issue with housing policy, of course: the views of national and local government are not aligned.
While Conservative, Labour and Liberal Democrat leaders all talk about the need to build more houses, their local councillors are often reluctant to green light schemes that are proposed on the ground – because local residents, who have more chance of kicking out their local representatives than affecting the result of a general election, often protest against them.
As I say, nothing is easy when it comes to property.
Attributed to Jonathan Samuels, CEO of Dragonfly Property Finance
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