British Conservatives in Paris Blog

Now that the question of Brexit has been settled following the general election victory, it gives us chance to discuss some incredibly pressing domestic issues.

Perhaps the most pressing issue is that of homeownership, and with it, home building.

As Conservatives we fundamentally understand that the best way to build a cohesive society is for the people within a country to own their home, lay some roots and feel part of their community.

Regrettably this aspiration for many people, particularly the youngest, is fast becoming a fantasy.

It is not an issue that has been born out overnight, it’s the result of over 30 years of changing legislation and economics that have created the problem.

Since the mid 2000s, Labour and Conservative governments have tried to help younger buyers get on to the housing ladder. Labour reduced stamp duty land tax to 0% for first time buyers. The Conservatives, under David Cameron, introduced amongst other things the ‘Help to Buy’ scheme.

Sadly, all the measures seem to have done is to stoke the demand side of the market without addressing the other issue on the probable lack of supply. As a result, house prices keep continuing to rise, and vastly faster than increases in wages.

As a result, in 1998 the average house price was 4 times the average annual salary. Today it is 8 times the average annual salary.

When discussing homeownership amongst the youngest, in 1991 67% of 25 to 34 year olds owned their own home. Today that figure has fallen to just 38% and given birth to the term, ‘generation Rent.’

Whilst the reasons for this phenomenon are complex, part of the issue is the lack of homebuilding. Changes in legislation and market forces often mean that large developers find it more profitable to sit on land rather than build.

Based on 2016 prices, the average price of residential land in the mid 1950s was £150k per hectare. In the mid 1990s it had increased to £1.3m and by 2007 £5m.

In England, land without planning permission is worth £20k per hectare. The same land with planning permission is worth £2m per hectare.

Coupled with these issues has been the extreme lack of new housing that has been delivered. France, a country with a comparable population and population growth to the UK, has completed 16.7 million new homes since 1970. In the same period, the UK has completed just 8.9 million.

It is good to see that our manifesto has pledged to close this housing gap by firstly pledging to complete 300,000 new homes a year. Additionally there is a pledge to provide support for builders using modern methods of construction and by making it easier for people to self build should they chose to.

It is still worth noting, however, that some analysts and commentators are very skeptical as to whether these measures go far enough. Further analysis, legislation and support will be required to the construction industry in the years to come.

The risk for the Conservative party politically is stark. As Labour elects a new leader the threat of socialism is still close at hand, whoever replaces Jeremy Corbyn.

Given that scores of 18-24 year olds flock to the left wing cause, and are very anti-Brexit, unless we are able to deal with issue and show that only a Conservative government can really help people achieve the simplest of aspirations, we may find ourselves out of power again for a duration similar to that from 1997 to 2010.

Andrew Crawford,

Secretary,

British Conservatives in Paris (BCiP)