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Labour has accused the government of having the wrong priorities on housing pushing the dream of homeownership further out of reach for many.
Ahead of changes to the stamp duty holiday (1 July), Shadow Housing Secretary Lucy Powell has accused the government of a failed approach to housing, highlighting that homeownership is down after a decade of Conservative government, and that ministers’ lack of focus on fundamentally addressing affordability is fuelling the housing crisis many face.
Average house prices in England have risen in the last 12 months, with the latest official ONS figures suggesting the increase is by nine per cent, or roughly £22,000.
Analysis shows that the £3,419 savings from stamp duty for the average house are dwarfed by these sky-high increases. With Nationwide illustrating this week that prices have risen 13.4 per cent in the year to June, at their fasted pace in 17 years, these savings could be even smaller.
It means that first time buyers are paying an extra £18,537 for their first home compared to this time 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 in Yorkshire and Humber, the North West, and South West amongst the hardest hit.
Powell said: “First time buyers have been further squeezed out of the housing market by the government’s failed approach, which has turbo charged an already buoyant housing market that had pent up demand even before the stamp duty holiday was introduced.
“They’ve given a huge tax break to the housing sector without addressing the fundamental issues of affordability. As a result, the dream of homeownership is now even further out of reach for first time buyers who are now priced out of the market. Ten years of a Conservative government with the wrong priorities, has failed to tackle the housing emergency.”
Sue Robb of 4Children talks to Julie Laughton and Alison Britton from the Department for Education about the role of childminders in delivering the 30 hours free entitlement.
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