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From The Socialist newspaper, 17 January 2008

Free market causes...

Growing crisis in housing

HOUSING IN Britain is an example of 'market failure'. The free market cannot, and will not, solve the current housing crisis. It is quite able, however, to provide multi-millionaires with penthouses in ex-Local Authority tower blocks and old waterside warehouses. It can build houses where it can still see the money rolling in.

Steve Wootton, Bristol Socialist Party

A market requires people who are able to buy what you have to sell. But a high cost of living, and pay deals that do not keep up with it, prevent many workers from affording a home. Now the credit crunch is also having an effect.

And if you can't afford the open market, even the 'part rent, part buy' schemes can't solve the problem. The 'buy' bit is still so expensive, and in some cases the service charges can bar members from this option.

And if you get through this, means testing rears its head as with all New Labour initiatives. So if you've worked to save a deposit and are in the First Time Buyers Initiative/ New Futures, all your money must go into the pot to purchase a share, with little flexibility to keep some back for unforeseen bills once you've moved in.

Own a home? More like 'own an ever-increasing debt' if you are not careful. Workers should be free from the worry of debt. A decent, secure and affordable home should be a right.

If the private market cannot provide that right, then there should be a massive public house-building programme planned, built and financed by the public sector.

The resources are there if the necessary land, the banks and the building industry are taken into public ownership, with compensation only on the basis of proven need. But the government has been more interested in shoring up Northern Rock bank so more private speculators can be subsidised at public expense.

The government claims that it doesn't matter who owns the housing or who will provide it, availability should take precedence. But we must not surrender to the free market idea that denies people the right to a decent home. It divides workers depending on what availability is in their area.

We hear this argument in the NHS, delivered by the Free Market Party's three wings - Labour, Conservatives and Liberals; that it doesn't matter who owns the service, so long as services are delivered and provided free.

But look at what PFI has meant in the NHS. Hidden charges, deficits, debts and even closures. For private housing that idea means repossessions where the private landlord is king.

As my trade union's journal CWU Voice said recently: "Our experience of private capital in public services is entirely negative". The CWU argues to keep the Post Office in public hands; and says that Telecoms should be brought back into the public sector.

Many workers are now caught in the trap of 'free market' control of housing. The CWU and other trade unions should also campaign hard to defend and expand public ownership of housing, along with land nationalisation, to solve the housing crisis.

Is this 'affordable' housing?

I AM on the council housing waiting list with my partner. We have had to start looking at 'part rent, part buy' "affordable housing" as we are considered as "Band 5" on the council list, ie no hope of getting anything else. First we were asked to consider the private market due to a high demand on remaining council stock.

The cheapest mortgage we found worked out as payments of 1,000 per month; before council tax and other bills. This was ruled out, it would totally swallow up my partner's monthly take home salary while bills would start to eat into mine.

Then we looked at the government's so-called "affordable" First Time Buyers Initiative. The latest letter from one housing association shows exactly what they think is "affordable."

For a one-bedroom apartment in Bristol, a single wage earner would need to be earning a minimum of 25, 365 or have a joint income with a partner of 31,465. For a two-bedroom apartment in Bristol, you would need to be earning 30,359 or a joint income of 37,809.

Steve Wootton

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Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
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In The Socialist 17 January 2008:

Fight for a living wage

Burslem: Support victimised postal workers

Editorial: Fight three year low pay tie-ins

Environment and socialism

Stop nuclear power plans NOW!

Is the burning of fossil fuels causing climate change?


Hain's sorry saga of sleaze

Blair's rewards from big business

Anti-Cuts campaigns

Fire cuts threat to our public safety

Cardiff schools campaign grows

Housing Crisis

Nationalise Northern Rock - permanently

Growing crisis in housing

Socialist Party news

Save our post offices

Salford says: "Don't close our women's centre"

'Them and Us': news shorts

Trade unions

Feature: Building the shop stewards' movement

Socialist Party campaigning

Ideas for campaigning and fundraising

International socialist news and analysis

Sri Lanka: New year starts with atrocities

Biggest miners' underground occupation in Polish history

Socialist Party review

Review: More Time for Politics, Diaries 2001-2007, by Tony Benn

Socialist Party workplace news

Reinstate Karen Reissman - defend mental health services!

Derby nurses fight management attacks

Liverpool: City of Cuts

Vote Jim Cessford


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