This week we published our renters’ manifesto, a portfolio of reforms that will end the exploitation of tenants while ensuring a fair and sustainable market for landlords.
But the cause of the problems in the private rented sector often track back to the limited supply compared to the demand for homes and the effect this has on rental prices.
We believe that in much of the private rented sector, particularly where there are strong local economies and employment opportunities, the rents are just too high in relation to wages. This drives up wage pressure for businesses and risks damaging our economy by making those businesses less competitive. In London that means the high cost of housing can make the city lose business to other cities around the world.
Britain needs London to have affordable housing for its workers in the same way that Britain needs London to have ports, airports and rail infrastructure.
Our paper, Buying out of the Bubble, sets out an innovative policy to create tens of thousands of permanently affordable homes each year with private investment. It requires the creation of a secondary, bubble free housing market for people who want to pay to live in a home, but not to bear the cost (or enjoy the returns) of property as an investment. It’s based on the principles of Community Land Trusts but at a market impacting scale.
Please take a look at the paper and let us know what you think.