I recently described the government’s housing policies as having moved from disastrous to catastrophic. It has the wrong strategy, the wrong policies and dreadful outcomes.
The government is busily stuffing millions of pounds of taxpayers’ money into the hands of a relatively small number of house-buyers – thus maintaining artificially high land and house values – whilst the proportion of families from this and the next generation who can actually afford to become house-owners shrinks every day. Disparities in wealth between the nation’s children and grand-children are to be determined by who can and who cannot afford to get on the house-ownership ladder.
At the same time, homelessness is increasing daily; more households are living in temporary accommodation; new social housing is coming to a halt; private rents are continuing to rise faster than inflation, and the government is prioritising big taxpayer subsidies to the relatively small number of already well-housed social-rented tenants to persuade them to be the next generation of right-to-buy lottery winners. It is madness.
Meanwhile, the government is now proposing to open the back door to corruption in the planning system by allowing developers to choose their own planners to advise local planning committees. It says this is because the planning system is holding back new housing development. This is nonsense.
Just consider for a moment why housing developers are making record profits and their share prices are going through the roof when development activity is at such a low level. The reality is that they are restricting the supply of new houses to keep prices artificially high.
The latest figures show that nearly half a million homes in England have planning permission but have yet to be built. The length of time it takes for developers to complete a house has jumped from 24 to 32 months. Some developments received planning permission more than 10 years ago, but are not complete.
In 2012/13, the total of unimplemented planning permissions was 381,390. In 2013/14 it was 443,265. In 2014/15 it had leapt even further to 475,647 homes in England which have been given planning permission and are yet to be built. The number is increasing daily.
it is clear that the big developers are building at a rate to maximise their profits rather than addressing the country’s housing needs.
Of course, their shareholders will be delighted.
But, it’s not in the nation’s interest, it is not in the people’s interest.
It is simply ludicrous that the government is subsidising and supporting this with its policies.
It is really quite outrageous.