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Labour warns homebuyers: Tory victory will mean a £72,000 deposit

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Labour warns homebuyers: Tory victory will mean a £72,000 deposit

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Published by Max Salsbury for 24dash.com in Housing

Labour warns homebuyers: Tory victory will mean a 72,000 deposit Labour warns homebuyers: Tory victory will mean a 72,000 deposit

The Labour party has warned that a Conservative victory in next year's general election will lead to homebuyers needing an average deposit of £72,000.

During a speech in Nottingham today, Shadow Housing Minister Emma Reynolds will forecast a gloomy future for house buyers if the Tories continue to control housing policy.

The MP will point to extrapolations based on House of Commons library statistics that show the average house price is set to rise to £359,000 by 2020 - 13 times the average wage predicted for that year.

Reynolds will say: “The government talk up the help to buy scheme but it's clear they simply haven't understood that boosting demand without boosting supply will simply see prices pushed out of reach of families and young people.

"This is the crucial difference between Labour and the Tories. The Tories claim to be the party of home ownership. But on their watch home ownership has fallen to its lowest point since 1987.”

Responding to Reynolds, David Orr, chief executive of the National Housing Federation, said: “The housing crisis has been caused by successive governments failing to build enough homes for the last 25 years and ordinary families and young people are now paying the price.

“As they struggle to find a home they can afford many have been forced to live in the expensive and unstable private rented sector, or live with their parents in to their 30s, unable to move on with their lives and make plans for the future.

“It’s good to see political parties beginning to set out their stall on housing, but to end the crisis once and for all they need to be much bolder in their action and look beyond the lifetime of the next parliament. Politicians from all sides must commit to ending the housing crisis within a generation and give housing the top priority it deserves.” 

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