Housing policy managed over the course of several decades has prioritized the interests of developers and homeowners, resulting in insecurity and inequality for the rest of the population. The number of privately rented households in England and Wales has significantly increased, reaching 5 million in 2021 compared to 1.9 million in 2001. In contrast, the rate of home ownership has declined from 64% to 62% in the past decade. Outright ownership without a mortgage remains the most prevalent form of housing tenure in England (33%) and Wales (38%), but younger adults have experienced a significant decrease in ownership. Additionally, both black and ethnic minority individuals and younger adults are disproportionately living in low-quality, privately rented flats.
Recognizing the negative impact of this situation, politicians across the political spectrum have identified housing as a critical issue. Housing Secretary Michael Gove recently delivered a speech aimed at addressing this issue, focusing more on style than substance. However, after abandoning the mandatory target of building 300,000 new homes annually due to potential backlash from fellow members of parliament, Gove is attempting to divert attention from his party’s record and instead highlight the vibrant city centers he envisions.
The key concept presented was densification, accompanied by the term “Heseltinian” as a nod to the redevelopment of east London supported by Lord Heseltine through the London Docklands Development Corporation. Mr. Gove intends to revive a similar model to drive forward development in 20 towns and cities. Faced with years of missed targets and disgruntled voters who feel priced out of the housing market, Gove argues that the government must directly confront the opposition to development, known as nimbyism. While Gove maintained politeness in publicly addressing Tory MP Anthony Browne’s criticism of a flagship project in Cambridge, it is evident that this does not bode well for the project’s success.
The renters reform bill, currently progressing through parliament, will finally bring about some improvements for existing tenants. It will include a ban on no-fault evictions and require landlords to meet deadlines in addressing hazards – a measure championed by the family of Awaab Ishak, whose death was caused by mold in their home. However, commitments to leasehold reform remain vague. Meanwhile, a new play serves as a reminder of the ongoing suffering endured by the survivors of the Grenfell tragedy.
Mr. Gove seeks to portray contrasting approaches to development as a dividing line, positioning himself as an urbanist visionary while characterizing Labour – with its proposal to relax green belt restrictions – as the party supporting suburban sprawl. However, this rhetoric disguises an unflattering reality. Under the Conservative government, the interests of renters, smaller builders, and the councils in charge of social housing, including those in city centers, have been neglected. Meanwhile, a small number of large construction firms have thrived, often making significant contributions to the Conservative party. Shockingly, these firms are still selling homes with inadequate environmental specifications that will require retrofitting to meet 2025 standards, despite opposition from the Climate Change Committee.
Although Labour has yet to present comprehensive solutions, their recent indecision regarding support for rent controls highlights their ongoing search for answers. Regardless, it is important not to be fooled by Mr. Gove’s eloquent words. Residential properties have transitioned from being a shared amenity between the public and private sectors to becoming assets for speculators. Insufficient regulation of landlords and a failure to reform property taxes have contributed to the growing divide between those who own property and those who do not. Hand-picking densification squads in Whitehall is not the solution.
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