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Housing will be key to the next election – L&G

by: Stephen Smith
  • 04/02/2014
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Housing will be key to the next election – L&G
There is an election on the horizon, and unlike any in living memory, we know when it will be in advance - it won’t be sprung on us on the back of one run of good economic data or a sporting success.

But more than any election that I can remember, right back to the 1970s, housing is set to be a key battleground. Positions are being developed now.

The good thing is, there is certainly a developing consensus across the parties that we need to build many more new homes than we do at the moment. Solutions differ as to how to do this however.

Perhaps unsurprisingly, Labour is making suggestions of a more interventionist nature. The “use it or lose it” threat to house builders who are sitting on disproportionately large land banks, for example. And they certainly would favour more direct building by local authorities and housing associations.

The Conservatives seem to be favouring “demand side” solutions so far, with both the Help to Buy equity loan and mortgage guarantee clearly increasing demand for new homes and homes generally, to be followed, it is hoped, by an increase in the output of house builders.

There are things which both sides will never agree on. The “bedroom tax” or “spare room subsidy” policy is an example of this, although logic should determine the future of this illogical policy. But there are perhaps areas of surprising agreement. Eric Pickles’ push for longer term leases to become the norm for private tenants will certainly find favour with more left wing people with an interest in housing matters.

Just after the Second World War, and indeed up to the 1960s, parties of all colours used to make huge housing promises in their election manifestos.

Let’s hope they do so again, and let’s hope it is a great debate. The UK deserves better housing provision, whoever is in power.

Stephen Smith is director of mortgage club and housing at Legal & General

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