Our Proposals
What Alternative Options Are There?
Make Better Use of Existing Housing
According to the Empty Homes Agency, there are an estimated 870,000 empty homes in the UK. It is essential to unlock these properties to bring them back into the market, thus increasing housing supply by almost 5% without the need for any new development at all. The government is currently working on a policy to enable this. We fully support this policy and hope to see empty and derelict properties coming out of disrepair and providing much-needed homes in the near future.
Discourage Investment in Property
Due to the large, relentless and steady increases in value, property has become a commodity of choice for investors - much like stocks and shares. They simply buy houses or apartments in popular areas and often hold them vacant with a view to selling them at a huge profit several years later. Of 40,000 new-build, one and two bedroom city centre apartments built in UK cities since the year 2000, an estimated 70% have been snapped up by investors. This makes a mockery of any attempt to increase the supply of suitable homes for genuine first-time buyers and keeps the prices sky-high.
We propose that the tax system should be used to discourage excessive investment in property, while still allowing the all-important rental market to flourish.
Promote Urban Regeneration and Employment in Less Popular Areas
One of the major housing problems at present is the fact that first-time buyers, as well as low-paid but essential workers are unable to live in certain areas due to the fact that they are seen as being "desirable", which keeps prices out of reach. It is a great tragedy in this country that we have so many areas that are considered "undesirable". By regenerating these areas and improving employment prospects, reducing crime and generally making them more attractive, a much more level playing field could be created. While this would not necessarily reduce the average property prices, it would create more desirable places to live and would therefore reduce the truly ridiculous prices we see at present in some of the most popular areas.
Return All Planning Powers and Decisions to Local Authorities
Until recently, all planning decisions were taken at a local level by district, unitary or county councils. While not a perfect system, this worked fairly well due to the local knowledge and accountability of planning officers and councillors. Now we are faced with central targets set in Westminster that local authorities are being obliged to adhere to. The trouble with this is that not only do these targets look set to completely change the character and quality of life in certain regions (especially the South-East), but worse still there is no accountability: the faceless organisations who are devising the plans will not suffer when things go wrong - we will! Therefore we stongly oppose central planning targets and propose a return to sustainable local planning.
Create a Regional Population Policy
The whole housing problem is driven primarily by population: there are simply too many people in certain regions compared with the amount of available housing and infrastructure to support them. This keeps the demand for housing extremely high and fuels high prices. Recent reports have suggested that the UK population could rise to 81 million within fifty years - an increase of 33%. Clearly if this happens, affordable property will be a thing of the past. The government need to be realistic and develop a policy to limit not only the total UK population, but also the populations of certain regions to sustainable levels, which should be achievable by increasing the desirability and employment opportunities of other less popular areas (see above). Only then will the housing market become stable.
Encourage More Cohabitation
One of the most effective ways to reduce demand is to encourage more people to live together. Clearly, with 60m people and 20m houses, an average of three people per house is required to keep demand in check and prices down. Incentives for this could include tax breaks and benefits for those who share their properties (clearly this includes married couples, but in fact any shared ownership should be encouraged).
Reform Credit, Mortgage and Lending Services
A primary cause of excessive house prices that could easily be tackled is the over-availability of credit and loans. If these services were run in a more responsible way, and assuming that investment in property is also tackled, this could be another strategy for holding down house prices, since it would remove peoples' ability to inflate prices by offering more than they can afford.