Tag: affordability

At our spring conference, the Green Party adopted a completely new set of housing and planning policies. These set out our big vision, and provide our politicians and manifesto authors with a starting point.

I’ve picked out five that I particularly like. Read More Why we voted for a new Green housing policy

In three and a half years, my local shopping parade has gained an Italian restaurant, a Persian cafe, a fancy wine shop, a retro furniture shop-cum-cafe, and most recently a microbrewery pop-up bar.

I love them, and the transition town market up the hill, and all the other nice changes to my new area. I am part of the gentrifying forces that are pricing me out of the area. Read More Better keep it a little bit shit?

As the election for the Mayor of London next year looms on the horizon, candidates are pledging to build more homes in the capital. But targets are no use to anybody unless they are backed up with a credible plan, and in London the biggest challenge is that the housing market is broken, dysfunctional, pining for the fjords. Read More Building homes, not false hope, in London

Peckham was my first port of call when I moved into London. So it was nice to return there to talk to Southwark Green Party about housing last night. Read More Southwark’s housing crisis

The Chancellor has announced a cut in stamp duty for most people in yesterday’s autumn statement, claiming it will help first-time buyers. Labour’s shadow chancellor quickly supported him, adding that it will “help people on middle and low incomes who are moving homes”. Given the extremely high prices in London, you sounds like great news! But it could actually make things worse. Let me explain with an example from Anerley. Imagine you were a rich enough first-time buyer to go for the average two bed flat in SE20, which according to Nestoria costs £329,000! You’ll now have to pay just over £3,000 less in stamp duty to buy it, which will be welcome news. But this means you, and every other buyer, now has £3,000 more to bid on the price for the home. The Government’s own economists – the Office for Budget Responsibility – say this will push up house prices. Using Shelter’s…

Read More How to push up house prices in London

A couple of years ago I included a chart of house building in a blog post arguing that young people shouldn’t necessarily support the removal of planning controls. The chart covered the period from 1955 to 2010, and showed that: The only time  that the UK has seen house building match demand, and kept housing affordable, was when councils built in huge volumes from the 1950s to 1970s. If you think price bubbles are all about supply, explain the continued volatility of house prices through the 1950s, 60s and 70s. People who want to see a massive expansion in house building can have their spirits dampened in other ways. Christopher Buckle from Savills wrote an interesting blog post suggesting that, on that house building data from the 1950s to the present day, a major boom looks very unlikely. He wrote: If private sector housing delivery grew by 7.5% every year until…

Read More Who built all that housing in England?

Darren Johnson has issued a report arguing that building new homes can’t solve London’s housing crisis alone. He suggests the Mayor should consider other solutions including smart regulations for the private rented sector, taxing land values and setting up land auctions. But there are two policies you won’t see in his list. Two policies that Greens often bring up in discussions about housing. I wanted to take some time this evening to explain why I think we should talk about them a little less, and in a very different light. Before I launch in, I would heartily recommend this blog entry by Liz Emerson as an overview of the sources of our housing crisis, to give an idea of why we need to act. The Green Party’s policy platform is chock-full of good ideas to rectify this, but when it comes to building new homes I think Greens sometimes find themselves on…

Read More Two false hopes that won’t solve London’s housing crisis

Jim Gleeson has an interesting blog entry about the consequences of making a city more liveable. In short, there is a danger that making an area more liveable can price out lower income people. By reducing air pollution and generally improving the local environment in more deprived areas,  richer people will start to move in displacing the people who should have benefitted. His prescription is more housing supply to accompany environmental improvements. But we need to think a bit more carefully about this to get the medicine right for places like London. As he points out, the economic benefits of making an area more desirable will largely go to existing home owners and landlords as the value of the land, and therefore the rent they can charge, increases. Lower income people will be forced to move, presumably (according to Jim’s argument) to less liveable areas. Council and housing association tenants…

Read More Green doesn’t need to mean gentrification

The chart below shows a breakdown of where my monthly gross income goes. I’m earning in the region of £30k/year, above the London average but not exactly an enormous sum. One of my favourite adages is that British people want Scandinavian public services with American tax levels.  Raising taxes to tackle the deficit is treated as something approaching political suicide. But do we pay all that much in tax? Put aside the fact that at 36% of the UK’s GDP, the current tax level is lower than under Margaret Thatcher (when it dipped to 40%) and much lower than the Swedish level of around 50%. How does tax affect me? Well my income tax and council tax, which pay for all the basic public services, the roads, waste collection, public transport investment, welfare for people in harder circumstances and much more account for less than my rent, which pays for…

Read More Why so concerned about tax?

Halifax have published a great little fact sheet on some key housing trends over the last 50 years. The most dramatic is that the cost of buying a home has risen 273% above incomes over that period, with the sharpest rise during the 2000s when they rose by 63%. This is the increasing cost of housing adjusted for increases in income; or adjusting for inflation to state rises in real terms, for economists. Imagine if food or heating bills rose that quickly compared to incomes! Whilst the property-owning journalists hail this rise in house prices, more and more people are squeezed out of the market, or forced to sacrifice huge chunks of their salary to repay mortgages. Jenny Jones published a report on the housing crisis in London recently. She shows that over the past decade the cost of buying a home doubled in London, well above the national rise…

Read More The cost of housing doubles in London