Government charged with having wrong priorities on housing
Labour has accused the federal government of getting the incorrect priorities on housing pushing the dream of homeownership further unrealistic for a lot of.
Ahead of changes to the stamp duty holiday (1 July), Shadow Housing Secretary Lucy Powell has accused the federal government of a failed approach to housing, highlighting that homeownership is down following a decade of Conservative government, and that ministers’ insufficient concentrate on fundamentally addressing affordability is fuelling the housing crisis many face.
Average house prices in England have risen within the last Twelve months, using the latest official ONS figures suggesting the rise is by nine percent, or roughly £22,000.
Analysis shows that the £3,419 savings from stamp duty for that average house are dwarfed by these sky-high increases. With Nationwide illustrating this week that prices have risen 13.4 per cent around to June, in their fasted pace in 17 years, these savings could be even smaller.
It means that first time buyers are paying an additional £18,537 for his or her first home when compared with this time around last year. In some regions outside London, the difference is, on average, even higher. First time buyers in the North East and West Midlands have to find an extra £20,000, with those who work in Yorkshire and Humber, the North West, and South West amongst the hardest hit.
Powell said: “First time buyers happen to be further squeezed out of the housing industry by the government’s failed approach, that has turbo charged an already buoyant housing industry that had pent up demand even before the stamp duty holiday was introduced.
“They’ve given an enormous tax break to the housing sector without addressing the fundamental issues of affordability. Consequently, the dream of homeownership is now even further unrealistic for brand spanking new clients who are now priced out of the market. 10 years of a Conservative government using the wrong priorities, did not tackle the housing emergency.”
