A child born this year has less than a one in three chance of
being a homeowner by the age of 50, new analysis reveals, as
Labour declares that it is “proudly the party of
homeownership”.
The proportion of people owning their home at age 50 has
plummeted under the Tories, falling from three in four in 2009-10
to below two in three on latest figures. If this rate was
maintained, in 50 years’ time this rate will have plummeted to
below one in three.
This means millions of people will go decades without the
security of owning their own home.
Alongside reforms to the planning system to get more houses
built, a Labour government will support first-time buyers with a
comprehensive mortgage guarantee scheme that will help
prospective homeowners who struggle to save for a
deposit, giving more people the pride and security that
comes with owning their own home.
Labour will also give first-time buyers first dibs on new houses
in their area, and tilt the system back in favour of local people
by stopping foreign buyers buying up swathes of new housing
developments before they are completed and offered to
locals.
In the midst of the current cost of living crisis, Labour have
pledged during the local elections that a Labour
government would freeze council tax this year, funded by a
proper windfall tax on oil and gas giants.
As the local election campaigns enter their final week, Labour is
underlining not just Tory failures on cost of living, but on the
chronic failure of the Conservatives to actively support young
people and families to get onto the housing ladder.
, Labour’s Shadow Levelling Up
& Housing Secretary, said:
“The Conservatives have abandoned first-time buyers. On their
watch homeownership rates have plummeted and mortgage costs have
soared, and now has prioritised appeasing his
own MPs over building the houses we need.
“Labour is proudly the party of homeownership. A Labour
government will set a target for 70% homeownership giving young
people and families the pride and security that comes with owning
their own home.
“We will reform planning to get more homes built and actively
support first-time buyers with a comprehensive mortgage guarantee
scheme and by giving them first dibs on new houses in their
area. Along with our mission to secure the highest sustained
growth in the G7 and to tackle the cost of living crisis, we will
build a better Britain.”
Ends
Notes:
A child born today has a 30% chance of owning their home when
they’re 50:
74% of people aged 45-54 were homeowners in 2009-10. In 2021-22
this had fallen to 65.5%. Assuming this trend continues, and
homeownership rates drop around eight percentage points per
decade, this would fall to around 30% in 2071-72. Data from
English Housing Survey.
Planning applications fall to record low:
https://www.theguardian.com/politics/2023/apr/01/planning-applications-in-england-fall-to-record-low-in-housing-blow
Housebuilding in England is due to fall to its lowest
level since the Second World War:
https://www.theguardian.com/society/2023/feb/26/england-new-housing-housebuilding-planning-policy
55 local authorities have suspended development plans after
government reforms created a “NIMBY’s charter”:
https://www.thetimes.co.uk/article/uk-housing-supply-crisis-home-building-england-2023-v0wjkwl0j
Scrapping housing targets set to deal £17bn blow to the
economy:
https://www.telegraph.co.uk/business/2022/10/22/end-house-building-targets-will-deal-17bn-blow-economy-obr-warned/
Labour’s Housing Plan
has set out a comprehensive
plan to target a homeownership rate of 70% and 1.5 million new
homeowners.
Labour will introduce a state-backed mortgage insurance scheme,
with the state acting as guarantor for prospective homeowners who
struggle to save for a large deposit. This will be modelled on
similar successful schemes in other countries, such as Canada and
Australia, where mortgage insurance increases the supply and
reduces the cost of high loan-to-value (LTV)
mortgages.
We will also ensure that first-time buyers can access homes that
are built, by giving them first dibs on new developments in their
area. We will also put an end to the practice of foreign buyers
purchasing swathes of new housing
developments off plan, before they are completed and
have been marketed to local people.
Labour will reform the planning system to ensure more new homes
can be built, with local people given a meaningful say on plans
for development in their area.
We will also build more affordable and social homes as part of
our plan to return social housing to the second largest form of
tenure, as well as improving standards and strengthening tenants’
rights with a Renters’ Charter that will make renting fairer,
more secure and more affordable.
