What will the new housing minister Dominic Raab make of the fact that the Tories since 2010 have been completing 25% fewer new properties than the last Labour lot did?
How will he manage to double the average 150,527 build figure to the 300,000 per year that his chancellor Philip Hammond pledged by 2025 in his last budget in November 2017?
How will Dominic Raab increase UK house building under the Tories by 77% to meet the 266,000 per year target that his boss Sajid Javid said is the minimum amount the UK needs just to stop the UK housing crisis getting any worse?
Table 1 – UK house building completions (average)
The simple table above is sourced from the governments official figures as produced in Live Table 209 which can be found here that are the official statistics. A simple average over the three time periods to represent this century, the Tory record and the previous Labour record.
The only increases under the Tories is for housing associations and councils and that is due to the affordable rent regime. Yet at just over 30,000 per year they represent just 10% of the UK requirement per year and show that housing associations despite their repeated hyperbole are a bit-player when it comes to meeting the UK new housing need.
Housing associations, unlike councils, are free to borrow to build and yet even with that freedom and the average 38% rent increases to tenants from the affordable rent regime to fund new house building they are still a bit-player in the lets build the UK out of its under supply housing crisis issue.
As I have said many times before if the 411 UK councils were allowed to borrow to build then an average of 1 property per day per council would see 151,000 more houses being built and the UK housing crisis of supply is resolved – and with it the affordability crisis and the home ownership crisis as 150,000 new council houses at social rent levels solves affordability and home ownership as the less you pay in rent the quicker and more you can save for the mortgage deposit.
Dominic Raab will find that leaving UK house building to the market has failed as his own government admitted in February 2017 with their white paper being titled “Fixing Our Broken Housing Market.”
Admitting that almost 40 years of leaving UK housing to the market has failed was a very bold admission from the Tories yet it has failed as Table 1 above reveals with the massive reduction in new homes from Private Enterprise, the likes of Persimmon etc.
What is worse for the Tories is that private enterprise is building over 45,000 fewer new homes per year under the Tories than they did under Labour and despite all the bungs such as Help to Buy that sees the chief executive of Persimmon award himself a £110 million bonus this year!
45,000 fewer housing completions per year from the market under the Tories than under Labour!
The Tory party will be aghast at that fact and as the facts show it is a fact. If Tory policy with its many incentives (ie bungs) such as Help to Buy and more cannot persuade their natural allies in Private Enterprise to build then the Tory house building strategy is in a dire mess indeed!
So good luck with the 100% increase needed in the building of new housing in the UK Mr Raab as your chancellor has pledged and just as much luck in the 77% increase needed just for the universally accepted UK housing crisis of supply to stand still and not get any worse as your immediate boss Mr Javid states. Of course the answer is above and is a simple one that can be exercised simple.
All you have to do is ALLOW councils to borrow to build and the housing crises of supply, affordability and home ownership can be solved. So simple even Meerkats can see it!
So simple even John McDonnell and Jeremy Corbyn see it and it is their policy although John Healey is doing his best to dilute it for whatever reason!
I am sure you Mr Raab with your well-known ambition for much higher political office can see that solving the UK housing crises of supply, affordability and of significantly falling UK ownership rates (71% in 2005 down to <63% at latest figures) is a major stepping stone to that ambition and whichever political party ALLOWS councils to borrow to build will receive huge electoral support ….