The Week in Housing: Labour’s housing plans take shape

Good afternoon.

With most pundits predicting a Labour win at the next general election, there is more focus than ever on their housing policies.?

This week was instructive in what shape a future Labour government may take. First, thanks to shadow housing minister Matthew Pennycook’s appearance at the National Housing Federation’s Summit, where he set out the party’s plans for social housing supply.?

Mr Pennycook promised that Labour would go ‘net positive’ on social rented housing supply early on in its term, using the twin levers of reduced Right to Buy discounts to limit sales and focusing affordable housing grant more keenly on social rented homes.?

On the one hand, this is good news as the country currently sells or demolishes 14,000 more social rented homes than it builds or acquires each year, which resembles a ludicrous act of self-harm during a housing crisis.

On the other, it is a pretty limited ambition. “We’ll build at least as many hospitals as we demolish or sell to the private sector” would not rank as a particularly exciting health offer.?

Also, Mr Pennycook’s means of getting there do not get the pulses racing. Focusing grant on social rented housing is a welcome move, but unless you also increase the size of the pot, you will actually be building less affordable housing overall. And Labour’s fiscal rules make a bigger pot unlikely.?

Cutting Right to Buy discounts may prove a cannier move than scrapping it, but it is possible it may not work to reduce appetite.

Right to Buy discounts were raised in 2012, and sales had flatlined before then to a mere 2,637 a year. But this was about the economy being in recession as much as it was about the lower discounts.?

In 2006-07, England saw 17,684 Right to Buy sales – more than any year under the Conservatives – even with the lower discounts that were in place under New Labour, and which Keir Starmer’s party seems keen to reimpose.?

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