The housing market scam that the Labour Party has ruled out solving

Developers are starving off the supply of UK housing to keep prices sky high. In 2023, the top ten developers had hoarded 700,000 land plots, restricting supply rather than building. In 2020, the top eight developers had banked 441,702 plots. So there’s been a huge increase. Including smaller developers, the 2023 figure for hoarded land plots was around one million. But where’s Labour housing policy on this?

What’s possible

This is both a scandal and a scam. The government (through employing builders and designers) should provide various styles and sizes of housing at cost price for all UK adults ready to own one.

The resident can then pay back the cost of building and designing the house to the government through a monthly installment, removing profit leeching from modern shelter, as well as organising supply to meet demand.

But instead, politicians, developers and no doubt many homeowners want to keep the housing bubble in tact, maintaining the artificially inflated ‘value’ of the house.

Labour housing policy claims

The Labour Party makes noise about housing in its manifesto, but earlier statements from the shadow chancellor contradict them.

In the manifesto, the party states “Labour will deliver the biggest increase in social and affordable housebuilding in a generation”.

It also claims Labour will build “1.5 million new homes over the next parliament” and “where necessary Labour will not be afraid to make full use of intervention powers to build the houses we need”.

But Rachel Reeves previously ruled out spending a penny of public money on housing. Speaking on the BBC in 2023, she said:

This isn’t about spending taxpayers money. This is about unblocking the planning system. It’s about offering some form of guarantor for people who are struggling to save a deposit but can afford the monthly mortgage repayments… It is clear that it is only Labour now that can help people fulfil their dreams of owning a home

She also claimed “builders want to build” – ignoring the hoarding of land. Prices are so expensive that as of 2022, homes cost as much – relative to average earnings – as they did in… 1876. The gentry are laughing all over again.

It’s become increasing blatant that Labour, like the Tories, will say anything politically beneficial to get into power.

In the latest instance of dishonesty, shadow housing minister Angela Rayner claimed Keir Starmer purged Jeremy Corbyn from the party for standing as an independent. This reverses the reality that he is standing as an independent because he was purged.

It’s unclear we can trust Labour to act on housing, let alone end the overall scam.

Featured image via Saul Staniforth – X