Prospective homebuyers could face a sizeable increase in the cost of their housing deposits, as the average amount needed to purchase a home may well rise to £72,000, the shadow housing minister advises today.
Calculations derived from new figures gathered by the Commonsí library indicate the average house price will shoot from £260,000 to £359,000 ñ up by 99, 000 ñ by 2020. This projected figure stands at 13 times the average wage, an even more worrying ratio than the current multiple of 10.
Labour attacking on perceived flaws in Housing Policy
Emma Reynolds, the shadow housing minister, is scheduled to speak in Nottingham today about the difficulties hopeful homebuyers will face in the coming years if the Coalition government is re-elected. Under Cameron, she will argue, there has been a stunt in house-building, and she will point to the potential 1.3m deficit in new houses built by 2020 as indicative of the weakness of government housing policy. This shortage in new homes would be most conspicuous in the South-East of England, where there will be 214,875 less homes than the speculated demand in 2020.
Miss Reynoldsí questioning of Conservative housing policy comes on the back of the shadow Chancellor, Ed Balls, citing governmentís inadequacies concerning house-building as the cause of a potential, premature rise in interest rates to combat a poorly managed, unstable housing market.
Miss. Reynolds will target the younger generation with remarks which will malign current housing trends, by indicating it is only going to get more expensive for those seeking to get onto the property ladder.
The shadow housing minister will also highlight Labourís plans to construct over 850 homes a year compared with both Liberal & Toryís far smaller corresponding figures. Labour state they are committed to the construction of 200, 000 homes a year.
Miss Reynolds will state: “While the Tories say the housing market is back on track, the truth is they’ve presided over the lowest level of house building since the 1920s.
“We’re not even building half the homes we need to keep up with demand.
“The Government talk up the Help to Buy scheme but it’s clear they simply haven’t understood that boosting demand without boosting supply will simply see prices pushed out of reach of families and young people.”
Perpetuation of Renting Culture is problematic
There are many who think affordable housing ought to be a right of tax-payers. On the back of recent statistics which shows private renters are parting with roughly 40% of their average income on extortionate monthly rent payments, Labour have pounced on Conservative apathy regarding the reform of the private rental sector.
Denigrating government focus on market factors, Emma Reynolds will criticise the Tories for their perceived lack of regard for family life, in an apparent attempt to dehumanise them, implying their concern is with miserliness and not honouring the social contract.
“In his last conference speech as leader of the opposition, David Cameron said: ‘If you want to raise a family, we’ll support you’,” she will say. “Perhaps in the small print it said: ‘Unless you rent’.”
In response, Reynolds will say Labour harbours ambitions of initiating long-term, better value rental contracts which cannot increase yearly costs over the length of the term. Moreover, Labour promises to crack down on smaller charges which add up, lightening the pocket of the tenant, such as letting agent fees.
However, Coalition housing minister, Brandon Lewis has rubbished Labourís claims stating houses are being built at the fastest rate for years, and the governmentís flagship Help to Buy scheme is aiding thousands in their pursuit of house purchase.
He said: ì”Here’s one fact they won’t tell you ñ under the last government Britain was building fewer homes than at any time since the 1920s. Labour’s record on housing was truly appalling.”
Although this back and forth squabbling between the UKís major political parties can be seen as a sign of the general election approaching, there is much weight in Labourís claims. The Housing market does need addressing, the question is whether Parliament can stop butting heads, and start putting them together, in order to discover solutions in the interest of prospective homebuyers across the UK.