Shadow housing minister Emma Reynolds will give a speech in Nottingham today, stating that the severe lack of affordable housing could force average house prices to soar to 13 times of the national average wage by the year 2020.
According to the latest figures, Reynolds states that the average house price in Britain peaked at £262,000 in May. Taking this and previous data into context, Labour has predicted that the average home as of 2020 will be roughly £359,000 resulting in buyers needing around £72,000 for a deposit.
Reynolds claims that labour plan to build more homes than Conservative and Liberal Democrats councils. She says that the average Labour council is committed to building 862 homes a year meanwhile the Conservative are committed to an average of 508 and Liberal Democrats an average of 393.
Reynolds speech will highlight the extent of the lack of housing, suggesting that house shortages are on track to be as high as 1.3 million homes; the equivalent being the size of the City of Birmingham.
She will say that only a Labour government can allow people to live their dream of home ownership. They plan on supplying at least 200,000 new affordable homes a year hoping to meet the demand our market has delivered.
Regarding renters, Reynolds will outline Labour’s plans to ban letting agent fees on tenants and to ‘Legislate to make three-year tenancies, not short-term tenancies, the norm for those who rent their homes in the private sector’. She states that ‘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.’
Minister for housing Brandon Lewis said ‘This speech from Labour just isn’t credible. Here’s one fact they won’t tell you – under the last government, Britain was building fewer homes than at any time since the 1920’s,’ he alleged. ‘Labour’s record on housing was truly appalling.’
Words by Aaron Bell