As Michael Heseltine, a key architect of many of the housing and regeneration policies pursued by the Conservatives over the past 40 years, once put it: “Home ownership stimulates the attitudes of independence and self-reliance that are the bedrock of a free society.”
But not only that, expanded home ownership, and the opportunities for home ownership, were considered to bring significant political dividends to whichever political party championed them, hence the focus during the New Labour years on continuing the notion of a ‘property-owning democracy’.
However, despite the political rhetoric from governments of a variety of party affiliations, the stark fact remains that from the year 2000 onwards, and despite many efforts politically, home ownership across the UK has gone into sharp reverse for the first time in more than 100 years and is now lower than quite a few of our European neighbours.
The reality in 2022 is that the country has never been so far from being the property-owning democracy so envisaged by political leaders since the 1980s. For during the past 20 years the number of 16- to 34-year-olds owning or buying their own home has almost halved. The proportion of all adults owning a home has also fallen 55%, while the numbers living in the private rented sector and houses in multiple occupation (HMOs) has doubled.
Some may believe this is essentially a London problem, or simply confined to high-value areas, but it is not. Falling levels of home ownership can be seen across all areas of the country among this key generation battling to keep our economy growing.
Of course, there is nothing wrong with good-quality rental accommodation, and the country needs to stimulate more homes of all tenures. Having a broad range of tenures and provision should also stimulate another Conservative principle – choice.
No choice at all
As part of that, young people need to be able to have the choice to own their home through the adequate availability of housing for sale, which in the current market is far from assured. So, in reality, many have no choice at all, because (redolent of the former Soviet Union) the very product that they really want simply isn’t available as the state hasn’t deemed it necessary to supply it.
For a generation brought up on having the freedom of choice of where and what products, services and experiences they buy, this only exacerbates the frustration felt by many: that they can purchase any product they like as long as it isn’t a house, because none are available. For a party with a modern political philosophy based around choice, free markets and opportunity, it seems bizarre that a Conservative government would tolerate this. Yet this is precisely what has happened.
Before it is too late for the governing party, there exists an opportunity, perhaps the final opportunity before prolonged reflection in opposition, to address this critical challenge, and help restore its fortunes, especially in cities, among this key electoral demographic. Yet, whether the new government can reset a declining trend in home ownership remains to be seen.
To do so, it needs to be bold and radical on housing. To do what former prime minister Tony Blair once proposed, yet never actually implemented, for welfare reform when he instructed then minister Frank Field to “think the unthinkable”. Or so you would think.
In reality, there are means to increase the supply of affordable-to-buy housing without the need for bold legislative moves or fiscal interventions. Through our recent research, Pocket has highlighted two key policy areas that could unlock the delivery of new affordable first-time-buyer homes at scale.
The first is a simple policy change in relation to small-site delivery that could unlock an additional 30,000 new affordable homes per year on brownfield sites close to key transport hubs.
The second is a minor change to the Levelling-up and Regeneration Bill to ensure that the proposed future Infrastructure Levy exempts all forms of affordable housing.
Taken together, these two changes could make a significant difference to both supply and the delivery of genuine housing choice. Taken in conjunction with other, more radical proposals, the Conservatives might actually start to create a platform that will help them regain electoral ground in our cities where they have today little to no following, through an appealing offer to the critical cohort of city-makers upon which all of our economic future depends.
For today’s young people to be part of the property-owning democracy, it is vital that the Conservative government draws upon all the levers available to it and uses its remaining time in office to full effect. Now is the time for action.
Marc Vlessing is co-founder and chief executive of housing developer Pocket
But not only that, expanded home ownership, and the opportunities for home ownership, were considered to bring significant political dividends to whichever political party championed them, hence the focus during the New Labour years on continuing the notion of a ‘property-owning democracy’.However, despite the political rhetoric from governments of a variety of party affiliations, the stark fact remains that from the year 2000 onwards, and despite many efforts politically, home ownership across the UK has gone into sharp reverse for the first time in more than 100 years and is now lower than quite a few of our European neighbours. The reality in 2022 is that the country has never been so far from being the property-owning democracy so envisaged by political leaders since the 1980s. For during the past 20 years the number of 16- to 34-year-olds owning or buying their own home has almost halved. The proportion of all adults owning a home has also fallen 55%, while the numbers living in the private rented sector and houses in multiple occupation (HMOs) has doubled. Some may believe this is essentially a London problem, or simply confined to high-value areas, but it is not. Falling levels of home ownership can be seen across all areas of the country among this key generation battling to keep our economy growing. Of course, there is nothing wrong with good-quality rental accommodation, and the country needs to stimulate more homes of all tenures. Having a broad range of tenures and provision should also stimulate another Conservative principle – choice. No choice at allAs part of that, young people need to be able to have the choice to own their home through the adequate availability of housing for sale, which in the current market is far from assured. So, in reality, many have no choice at all, because (redolent of the former Soviet Union) the very product that they really want simply isn’t available as the state hasn’t deemed it necessary to supply it. For a generation brought up on having the freedom of choice of where and what products, services and experiences they buy, this only exacerbates the frustration felt by many: that they can purchase any product they like as long as it isn’t a house, because none are available. For a party with a modern political philosophy based around choice, free markets and opportunity, it seems bizarre that a Conservative government would tolerate this. Yet this is precisely what has happened.Before it is too late for the governing party, there exists an opportunity, perhaps the final opportunity before prolonged reflection in opposition, to address this critical challenge, and help restore its fortunes, especially in cities, among this key electoral demographic. Yet, whether the new government can reset a declining trend in home ownership remains to be seen. To do so, it needs to be bold and radical on housing. To do what former prime minister Tony Blair once proposed, yet never actually implemented, for welfare reform when he instructed then minister Frank Field to “think the unthinkable”. Or so you would think. In reality, there are means to increase the supply of affordable-to-buy housing without the need for bold legislative moves or fiscal interventions. Through our recent research, Pocket has highlighted two key policy areas that could unlock the delivery of new affordable first-time-buyer homes at scale. The first is a simple policy change in relation to small-site delivery that could unlock an additional 30,000 new affordable homes per year on brownfield sites close to key transport hubs. The second is a minor change to the Levelling-up and Regeneration Bill to ensure that the proposed future Infrastructure Levy exempts all forms of affordable housing. Taken together, these two changes could make a significant difference to both supply and the delivery of genuine housing choice. Taken in conjunction with other, more radical proposals, the Conservatives might actually start to create a platform that will help them regain electoral ground in our cities where they have today little to no following, through an appealing offer to the critical cohort of city-makers upon which all of our economic future depends. For today’s young people to be part of the property-owning democracy, it is vital that the Conservative government draws upon all the levers available to it and uses its remaining time in office to full effect. Now is the time for action. Marc Vlessing is co-founder and chief executive of housing developer Pocket
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