Jo Swinson says she will “stop Brexit and build a brighter future,”; whether she can build the 300,000 new homes she’s promised is a moot point.
Hoping to hoover up votes from young people disillusioned by the Referendum result, Boris Johnson’s die hard Brexit stance and Jeremy Corbyn’s classified position on leaving the EU, Jo Swinson is tantalising Generation Rent with promises of housing reform.
Jo Swinson has pitched herself as a contrast to the male, pale and stale competition. Next to Boris Johnson and Jeremy Corbyn, she has styled herself as the political cool aunt. She’ll banish Brexit, legalise cannabis, fight for the environment and get young people living under their own roofs.
So, what exactly is she promising, and how feasible is it?
To create more homes, she promises to:
- Build at least 100,000 homes for social rent each year and ensure that total housebuilding increases to 300,000 each year.
- Help finance the large increase in the building of social homes with investment from our £130 billion capital infrastructure budget.
- Build new houses to zero-carbon standards and cut fuel bills through a 10-year programme to reduce energy consumption from all the UK’s buildings.
- Devolve full control of Right to Buy to local councils.
Can she do it?
We’ve all heard it before. Every political party has made the same promise to build 300,000 homes a year but we’re not even close to this elusive target. Swinson may have costed her ambitious plan, but she’s neglected to mention the antiqued planning system, skills crisis or how she will magic up more land.
Nick Sanderson, CEO, Audley Group, said, “It’s headline grabbing, but misinformed. As manifestos are published and debated, I urge the political parties to take another look at the broader possibilities to create enough homes. The larger properties that could be freed up if more specialist housing was built. The older people that would love to downsize. Our own recent research found that 27% of over 55s who downsized really struggled to find a suitable property.
“What a waste that is when those family homes would go a long way to creating movement in the housing market and halting the need to build over huge swathes of UK countryside.”
To help people find and keep homes of their own, she promises to:
- Help people who cannot afford a deposit by introducing a new Rent to Own model for social housing where rent payments give tenants an increasing stake in the property, owning it outright after 30 years.
- Allow local authorities to increase council tax by up to 500% where homes are being bought as second homes with a stamp duty surcharge on overseas residents purchasing such properties.
Can she do it?
The Rent to Own model sounds strikingly similar to the revamped version of Shared Ownership unveiled at the Tory Party Conference last month. The idea faced staunch criticism from housing associations, who said that it failed to explain how stock sold off under the scheme would be replaced. Without this vital component, the scheme is likely to suffer the same fate as Right to Buy, which is widely criticised for depleting housing stock.
To reform the private rental sector, she promises to:
- Help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.
- Promote longer tenancies of three years or more with an inflation-linked annual rent increase built in, to give tenants security and limit rent hikes.
- Improve protections against rogue landlords through mandatory licensing.
Can she do it?
Regulations on landlords have increased by a third since 2010, so more red tape is likely to see a fair number close the door on the sector. However, this isn’t necessarily a bad thing. Indeed, it could separate the wheat from the chaff.
David Smith, Policy Director for the Residential Landlords Association, said: “We welcome the Liberal Democrats’ plans to support younger tenants in accessing rented housing with a deposit loan scheme. This is a policy we have long been calling for and believe it could considerably improve prospects for younger people. This is tempered by the Party’s proposals for three-year tenancies with rent increases linked to inflation. It is bizarre to be proposing this when the average length tenants have been in their properties is over four years and when private rents are increasing by less than inflation according to the Office for National Statistics.
“Proposals to end the Local Housing Allowance Cap as well as ending the hostile environment for immigration are welcome steps and reflect proposals put forward by the RLA in its own manifesto for the private rented sector. However, the Party’s plans for a blanket licensing scheme for landlords needs further thought. The crooks will simply not come forward, leaving the good landlords to pick up the tab for what would be a costly waste of time.”
End late payments to contractors
Jeremy Corbyn actually beat her to this one, announcing it ahead of the Labour Manifesto. However, as the first party to publish their manifesto, the Lib Dems are the first to pledge that they will tackle the multi-billion pound late payment problem.
She promises to:
- Require all government agencies and contractors and companies with more than 250 employees to sign up to the prompt payment code, making it enforceable.
Can she do it?
Let’s hope so. Almost a quarter of insolvencies (23%) are caused by late payment issues. Late payment seriously damages SMEs, who often have to pay the price for the imbalance of power when negotiating contract terms.
Phil Hall , AAT Head of Public Affairs & Public Policy, said: “Late payments have an incredibly negative impact on British business, especially the SME community, and so after years of minor tweaks, voluntarism and ineffective tinkering, it’s encouraging to see the Liberal Democrats and Labour recognise the need for legislative reform.
“We very much hope that the Conservatives will now take note and commit to the meaningful changes proposed by AAT rather than sticking with the inadequate measures they announced earlier this year.”
Ifan Glyn, FMB Senior Hub Director, added: “On a positive note, I strongly welcome the Lib Dems’ pledge to enforce big businesses and government agencies to adhere to the prompt payment code. Smaller building firms are being held back by the abuse of retentions and late payment practices that are rife. Getting tough on serial offenders will help small businesses get back to doing what they do best, which is delivering quality work and training the next generation of builders.”
PICTURE CREDIT: Keith Edkins
