New data from Labour show that rising house prices are outstripping increases in wages in almost all parts of the country. The figures are released as part of Labour’s local election campaign, which is highlighting the six years of failure on housing under the Tories – from rising homelessness to falling home-ownership.
In the East Midlands the average house price now stands at £183,284, an increase of 12 per cent since 2010, whilst wages have grown just 2 per cent in the same period.
John Healey MP, Labour’s Shadow Housing Minister, has said that tackling home-ownership is Labour’s housing priority:
“We need more good homes of all types to fix the country’s housing crisis.
“The shocking fall in home-ownership over the last six years shows that what used to be a natural part of growing up is becoming a luxury for those on the highest salaries, or whose parents have the deepest pockets.
“A million more families became home-owners under Labour but on the Tories’ watch the number of young people owning a home is now in freefall.
“This is a complete failure. Ministers have got no long-term plan for declining home-ownership and a worsening housing crisis.
“With the Conservatives in government, the best hope for millions of people in the East Midlands and across the country at present is Labour in local government – our Labour councillors and councils campaigning to put Labour values into practice in their areas.”
Labour previously released data, as part the ‘Redfern Review’ into the decline of home-ownership, showing that the number of young home-owners has declined in every region of the country between 2010 and 2015.
In the East Midlands the number of young home-owners had fallen by 17 per cent, with 24,793 fewer young people owning their own homes in 2015 compared to 2010.
Government schemes, soon to include new ‘starter homes’ of up to £450,000 which are contained in the government’s Housing and Planning Bill, are missing the mark – failing to help young people and families on ordinary incomes who need help the most. The Housing and Planning Bill is being debated in the Lords this week.