The Telegraph has run an article by Guy Hands, the founder of private equity firm Terra Firma Capital Partners, outlining his views that years of weak supply, underinvestment and red tape have not been addressed.

It can be seen here (subscription may be necessary), in which the author highlights the ongoing housing crisis in the UK and criticizes successive governments for their short-term focus on housing issues. The lack of consistency and a long-term strategic direction for UK housing is emphasized, with the author pointing out the turnover of 16 housing ministers since 2010.

Key points and criticisms made by the author include:

  1. Government Decisions and Short-Term Objectives: The author suggests that recent government announcements on housing, particularly those by Michael Gove, are seen as political moves rather than strategic, long-term solutions. The timing of these announcements, in the context of an upcoming election, raises questions about the sincerity of the government’s commitment to addressing the housing crisis.
  2. Investment in Housing: The author, who has invested in housebuilding businesses, argues that despite increasing investment in the sector, successive government failures have led to a severe lack of affordable housing. The need for housing has continued to grow, making it difficult for young people to own homes.
  3. Undersupply Issues: The problem of undersupply is attributed to planning constraints, demographic changes, the decline of social housing, increased building and housing costs, and redirection of funds away from housing.
  4. Government Funding Redirection: The redirection of funds away from housing, starting with the privatisation of council housing in the 1980s, is criticized. The author mentions that both Labour and the Conservatives have redirected housing funds to other areas, affecting the condition of military homes and contributing to the chronic housing supply problem.
  5. Lack of Social Homes: The author cites a report from the Home Builders Federation, stating that England is the most difficult place to find a home in the developed world. Research from Shelter indicates a shortage of social homes, with over a million households waiting for them, while fewer than 7,000 were built last year.
  6. Proposed Solutions: The author proposes radical policy changes, such as designating green belt land for housing, freeing up unused government properties, removing planning restrictions, abolishing stamp duty below £300,000, and focusing on shared ownership. The goal is to build enough housing within three years to make a substantial difference.
  7. Impact on Education: The article suggests that housing issues can affect education outcomes, with children citing housing concerns as obstacles to school attendance. Poor housing is seen to impact health outcomes, social relationships, and community building.
  8. Political Criticism: While the author acknowledges recent positive announcements by both the Conservatives and the Labour Party regarding housing, there is skepticism about whether these promises will be fulfilled or if they are merely campaign rhetoric.

The article concludes by highlighting the need for addressing housing and its wider impacts as a priority and questions whether political parties will follow through on their promises if elected.