At this month’s Full council meeting I will be submitting the following motion for discussion:
“This Council notes:
The average monthly rent in Reading is now over £1000 a month (valuation office agency)
The average house price in Reading is over £300,000 (according to the Land Registry)
The earnings to house price ratio in Reading is now 10:1.
The average house deposit in the UK is £33,960 and in Reading this is much higher (Halifax)
Reading Council is doing all it can to ease the housing crisis with the Homes for Reading company and the building of new Council houses including at Conwy Close.
This Council resolves to write to Housing Minister Sajid Javid to ask if he will support the Local Government association campaign that asks to enable Councils to:
Allow Councils to borrow to invest.
To keep all of the money received from the sale of homes on right to buy.
To use this and other funding to reinvest in building new homes that are good quality and affordable.”
I hope that this is able to gain cross party support as it is an issue in Reading that needs urgent action and spans party political lines. It supports a local Government campaign (again, cross party) that calls for local Councils to be able to borrow to build and help us solve our housing crisis.
Teresa May visited a first time buyer in Wokingham earlier this month which was reported on in Get Reading. Some of the kinder comments included: “How old is this first time buyer? 58?”, “first time buyer from a wealthy family who chucked 50 grand at them” and “First time buyers? Do they still exist?”
The number of first time buyers has dropped by nearly 250,000 in 20 years, the average age of home ownership has risen and the deposit needed is now somewhere in the region of £50,000. Without the bank of mum and dad, many people are unable to even entertain the idea and have simply given up on the prospect of home ownership. This has led to many people moving out of the area all together. For someone that has spent all of their life in Reading, seeing people having to up sticks due to housing costs is deeply saddening.
The tinkering in the budget was not enough, the crisis is now and needs immediate action to remedy it, not vague promises and targets that are tied to some artificial goal post. If Councils were able to borrow to build homes, for real people and families, not buy to let landlords for profit, then a future revenue stream or asset sale is created for the Council. An asset is on the books and welfare bills fall from lower housing benefits and B&B accommodation. It really is a win win situation.
The Conservative leader of Norfolk district Council John Fuller said after the budget that the opportunity to “Fully lift” the cap on local authorities ability to borrow and build has been missed. I hope that he is wrong, that this motion will pass and that housing Minister Sajid Javid will press for this change and help the residents of Reading.