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How building Council housing can help Labour beat Reform UK

How to beat Reform UK? It’s the question many in the Labour Party are now asking, with increasing desperation.

Alienated from mainstream politics and politicians, Reform UK supporters see Labour as the ‘establishment’ with little concern or understanding for their lives or their problems. To reach Reform supporters, Labour needs to show in practical, concrete ways that it ‘gets’ Reform voters’ concerns. Labour needs to deliver practical and concrete improvements across the country.

The answer is straightforward. Labour needs to build more council homes and create more non-graduate jobs. And we can do both at the same time using the same money.

Building more council homes in every part of the country will directly benefit those families who are currently in housing need. Those who are overcrowded or who need a smaller home. Those who are homeless and living in expensive and substandard private rented accommodation. Those whose children and grandchildren are paying through the roof to private landlords for very basic accommodation.

Many of these families have lost faith in mainstream politics after 14 years of failed Conservative governments when few new council homes were built and many continued to be sold off. We need to show, by our actions, that the needs of the non-graduates living in non-metropolitan parts of the country are just as much a priority for Labour as anywhere else.

The new council homes Labour builds should benefit the widest range of families. When new council homes are being built, existing residents should know that they will benefit, too. A central message should be that the new council homes are not just for ‘other people’ or ‘outsiders’, they are for people like YOU. Using local housing allocation policies in operation on many Labour councils already, half the new homes should go to those families who have been waiting patiently for a bigger or smaller home. The other half should go to those who are currently homeless or have been languishing on the housing waiting list.

Building new council homes needs a range of traditional non-graduate skills – bricklayers, plumbers, electricians, plasterers, scaffolders, painters, decorators, carpenters. Just watch an episode of Nick Knowles’ DIY SOS to see the wide range of non-graduate trades needed to build or renovate a house.

Using existing construction companies, local subcontractors and their employees will benefit, too. Many of these subcontractors will be small businesses and will get a real boost by Labour’s council house building programme. Local council house building programmes will give small construction companies the long-term commitment needed to plan their investment.

Working with local colleges, we need a massive construction skills training programme, equipping people of all ages with a skill that will form the basis of a lifetime working career. Construction skills give access to jobs in every part of the country and to any country in the world. You can work for a company or be your own boss, working hard to build a business that gives you and your family financial security and independence. The construction workers benefitting from Labour’s council house building programme will have a real and tangible stake in the economy and in society.

When the new residents move in, some will want new furniture, new carpets and new white goods. Buying these will help local shops and help grow the wider economy. Others will want to paint or paper the walls and add a few personal touches, benefitting local DIY shops.

And don’t forget that the new council tenants will be paying rent to the Council which will then be used to pay back the money it borrowed to build the new homes.

As John Harris wrote in a recent ‘Guardian article, the politics are very basic,

“Four decades ago, many of Reform UK’s older supporters had their lives transformed by Margaret Thatcher’s policy of encouraging people to buy their council houses at huge discounts; now, their daughters, sons and grandchildren live with the dire housing crisis that policy caused. If you understand at least some of the rising ire about immigration as fear of even more competition for scarce resources, housing is right at its heart: in my experience, no other issue comes near its impact on everyday life.”

We have it in our power to embark on the biggest council housing programme since 1945. If we don’t take this opportunity and then lose out to Reform UK in 2029, it will be our own fault. Let’s not make this mistake!

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Delivering Labour’s Council house mission

Labour’s mission to ‘Get Britain building’ is off to a flying start. Within weeks of winning power, Deputy Prime Minister and Housing Minister, Angela Rayner has announced a raft of new initiatives to meet Labour’s pledge to build 1,500,000 new homes by 2029:

  • Mandatory local housing targets for each Council, totalling over 370,000 new homes a year.
  • Low-quality “grey belt” land in green belt areas will be prioritised for new homes with 50% of the new housing affordable.
  • Essential infrastructure, such as schools, doctors’ surgeries and transport links will be provided, too.
  • A new generation of New Towns will be built.

“This is only the first step – we plan to do so much more,” Rayner told Parliament.

And so much more will certainly be needed. In a recent Fabian Ideas pamphlet, ‘Brick by Brick’, Simon Graham sets out the scale of the task:

  • The social housing stock has decreased by a net 21,800 homes a year over the last decade.
  • There are currently 1.3 million households on council housing waiting lists, up from 1.1 million in 2018.
  • In February 2024, London’s largest housing associations said they would start building just 1,769 homes in 2023/24, compared to 7,363 in 2022/23.
  • Over 2 million council homes in England have been sold through the Right to Buy and, following resales, 40% of them are now owned by private landlords.
  • Councils spent £1.7 billion on temporary accommodation in 2022/23, an increase of 62% since 2018.

In July 2024, a cross-party group of 20 local authorities reported that “England’s council housing system is broken and its future is in danger. New analysis from Savills shows that councils’ housing budgets will face a £2.2bn ‘black hole’ by 2028.”

Such is the parlous state of social housing finance, that in July 2024, the ‘i’ newspaper reported, “A snapshot survey of 13 major house builders found that in January each had an average of 1,000 affordable homes with detailed planning permission that were held up because they couldn’t find a purchaser for affordable homes built under s106 planning deals.” If Labour wants to deliver “the biggest increase in social and affordable housing in a generation”, as its Manifesto states, then it needs to find the cash for these 13,000 new homes.

Attlee’s post-war Government transformed the lives of many, building 1 million new homes between 1945-1951, 80% of them council houses. Conservative Housing Minister Harold Macmillan continued Labour’s example, building over 245,000 new council homes in 1953 alone.

From the 1950’s – 1970’s, the country built around 300,000 a year – half by housebuilders for sale and the other half by local councils for rent. The Government will not reach its 1,500,000 new homes target without a massive council housing building programme.

Building new council homes also benefits the economy and saves money. A Local Government Association report argues that every £1 invested in new social housing generates nearly £3 in the wider economy. Also, every new council home saves around £800 a year in Housing Benefits payments to landlords. And, because tenants pay rent, the council homes pay for themselves over time.

To achieve 370,000 new homes a year, local councils need to build at least 150,000 council homes every year. The only way in which this can be done is through every local council in the country playing a part. The maths is daunting. Building 150,000 council homes a year means building over 400 new homes a day, every day, weekends included, for the next 5 years.

So, here is a 10-point plan to deliver Labour’s mission:

  1. Every council should design plans for new council homes on land they own for 50% of the council’s housing target. Councils should also identify other public sector land and start discussions with the landowners.
  2. Using local architects, funded by the MHCLG, plans for each site should be put to local consultation to get buy-in locally.
  3. Where planning permission has been granted for new housing but not yet implemented, councils should discuss with landowners how to get development started, including councils funding development in return for a proportion of new social rent homes.
  4. Metro Mayors should work with constituent councils to coordinate the delivery of local council housing and private sector homes.
  5. In areas where there are no elected Mayors, regional ‘Housing Commissioners’ should be appointed by MHCLG to coordinate housing delivery.
  6. Each Mayor and Regional Housing Commissioner should be responsible for managing construction skills training in liaison with the CITB.
  7. A national Housing Commissioner should be appointed by MHCLG to oversee the delivery of the Government’s housing mission and coordinate the work of the Mayors and Regional Housing Commissioners.
  8. Right to Buy discounts on existing and new council properties should be reviewed and limited to, say, £1,000 for every year the applicant has been a council tenant and capped at £25,000.
  9. The Mayors and Regional Housing Commissioners should report monthly on the number of new housing starts and completions and construction skills trainees and graduates.
  10. Planning rules should be strengthened to stop the current abuse by landlords who let residential property as Airbnb-type short-term lets, taking homes out of residential use.

Finally, building the promised 1,500,000 new homes is a full-Parliament job. In Attlee’s Government, Aneurin Bevan held Minister of Housing job for five years, Harold Macmillan had the job from 1951-1954. This is Angela Rayner’s opportunity to join the ranks of those few Housing Ministers who truly made a difference.

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Building the New Jerusalem – How Attlee’s Government built 1 Million New Homes

Everyone knows that Clement Attlee’s 1945-1951 Labour Governments created the NHS, brought the coal mines and railways in to public ownership and gave India and Pakistan independence. But one of Attlee’s lesser celebrated achievements was building one million new homes at a time when building materials were in short supply and when the construction labour force was reduced to a third of its pre-war size.

From a slow start in 1945 -1947, new housing completions averaged around 200,000 a year for the next four years from 1948 -1951. By 1951, a total of 1,016,349 new homes were built, of which 806,857 were new Council houses. On top of that, 156,623 ‘prefabs’ were built, many of which provided decent and much-loved homes for many years to come. In addition, hundreds of thousands of existing homes were repaired and converted in the six years after the war.

Michael Foot rightly claims, “This achievement was no small one in the first years after the war when the country was also engaged in a big factory-building programme. It far surpassed anything achieved in Britain after 1918 or in most countries after 1945”.

However, despite the heroic efforts of Aneurin Bevan and his colleagues, more could have been achieved had Labour stuck to its Manifesto commitment and created a separate Ministry of Housing and Town Planning. Attlee gave Bevan the job of ‘slaying’ two of Beveridge’s ‘five giants’ – Squalor (caused by poor housing) and Disease (caused by inadequate health care provision). As Nick Thomas-Symonds argues:

“Having the same Cabinet minister responsible for both the creation of the NHS and housing the nation after the destruction of the Second World War was more than overload. It left Bevan to deal with the intricacies of both sides of his department when either half in itself would have been too much for a single minister.”

Should the housing building programme have been led by a ‘National Housing Corporation’, as Douglas Jay had recommended in the first few months of the Government, rather than by the local authorities, many of which had little experience of building new homes at scale.

Certainly, a national organisation with regional offices would have made planning, direction and control easier, but it could also have taken some time to establish. By harnessing the experience of the big city housing departments in London, Manchester, Birmingham, Leeds and Glasgow, which had been building new out-of-town estates for over a decade and more, Bevan was able to combine real expertise with local knowledge.

The downside was that outside the big cities, experience was strictly limited with many local councils simply unable to move quickly. Overall, perhaps a key factor in this debate is that, six years later, Harold Macmillan was able to build 300,000 houses a year based on the same local authority ‘delivery system’ established by Bevan.

Should Labour have been more pragmatic and built more homes at lower standards, as Macmillan did during the 1950s? The average new three-bedroom Council house increased in size, from 860 square feet in the pre-war period, to 1,026 square feet in 1946, to 1,055 square feet in 1949, falling back to 1,032 square feet in 1951 and down to 947 square feet in 1952.

By 1959, the average size of a three-bedroom Council house had fallen to 897 square feet. Bevan was surely correct to increase space standards, remaking famously in Margate on 22nd May 1947, “We shall be judged for a year or two by the number of houses we build. We shall be judged in ten years’ time by the type of houses we build”.

There is little doubt that the new, larger Council houses built in the years immediately following the Second World War were some of the best ever built and have stood the test of time. In 1950, the first four blocks completed on the Churchill Gardens estate in Pimlico won Festival of Britain Architectural Awards. It wasn’t just the architectural critics who praised the flats. In 1962, tenants in the ‘posh’ private flats in Dolphin Square next door opposed a rent rise arguing, that “many of the flats are not as nice as those put up by the Council in Churchill Gardens opposite”.

Other post-war estates were similarly feted. In 1998, English Heritage listed the Spa Green estate in Finsbury as Grade II*. The Survey of London describes the Spa Green Estate as ‘heroic’. Nikolaus Pevsner called it ‘the most innovative public housing’ of its time.

Perhaps where Labour’s lofty ambitions most obviously failed was in the goal to create new communities where the ‘spirit of companionship’ would flourish and “wartime sentiments of social solidarity and shared purpose could be maintained and strengthened in the post-war world”. Aneurin Bevan harked back to the time where “the doctor, the grocer, the butcher and the farm labourer all lived in the same street”.

Similarly, Lewis Silkin’s ambition that class distinctions would fade away in the New Towns was never achieved. He hoped that “different income groups living in the new towns will not be segregated” and that after attending a town centre event, “When they leave to go home I do not want to see the better-off people to go to the right and the less well-off to go to the left. I want them to ask each other, ‘Are you going my way?’”.

There can be no denying Labour’s fundamental achievement to meet the aspiration of very many working class families to live in high quality affordable housing – which the Conservatives followed with great success over the next 13 years. The lives of so many working class families – who had been ignored by every previous Government – were transformed for the better.

As the historian Kenneth Morgan so clearly concludes:

“The rehousing of several million people in new or renovated houses, at a time of extreme social and economic dislocation, was a considerable achievement. Housing, therefore, deserves its honoured role in the saga of Labour’s welfare state.”

His book, ‘Building the New Jerusalem: How Attlee’s Government Built 1 Million New Homes’, is available in paperback and Kindle https://www.amazon.co.uk/dp/B08N1H3PYL

All royalties will be donated to Foodbanks in Westminster.

<strong><span class="has-inline-color has-accent-color">Paul Dimoldenberg</span></strong>
Paul Dimoldenberg

Paul Dimoldenberg was first elected to Westminster City Council in 1982. He was Leader of the Labour Opposition Group from 1987-1990 and from 2004-2015.

He is the author of ‘The Westminster Whistleblowers’, published by Politicos in 2006, which tells the story of the Westminster ‘Homes for Votes’ scandal of the 1980s and 1990s. He also has recently published Cheer Churchill. Vote Labour.

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We built the Spitfires. Now we can build the houses.

Seventy-five years ago, Britain was in the midst of a General Election that would transform the country for generations to come. And Clement Attlee’s 1945 landslide General Election victory was built on the foundations of Labour’s housing, construction and town planning policies.

To mark the 75th anniversary of Labour’s 1945 General Election victory, Paul Dimoldenberg introduces his new book:

Cheer Churchill. Vote Labour’ – The story of the 1945 General Election.

In 1945, the British people took a very practical view of the future. They wanted a decent home, a job and not to have to worry when they became ill or fell on hard times. In short, they wanted a better life and saw Labour as the vehicle through which these aspirations could be achieved.

Labour promised ‘bread and butter’ improvements which secured the votes of working-class and middle-class families. With over 2 million houses damaged or destroyed by the blitz, over half of them in London, the scale of destruction throughout Britain explained the desperate need for new homes.  Again, and again, homes and jobs were foremost in the minds of voters.  Labour recognized these as the priorities. And the voters believed Labour would provide them. The Labour Manifesto promised:

“Housing will be one of the greatest and one of the earliest tests of a Government’s real determination to put the nation first. Labour’s pledge is firm and direct – it will proceed with a housing programme with the maximum practical speed until every family in this island has a good standard of accommodation. That may well mean centralising and pooling of building materials and components by the State, together with price control. If that is necessary to get the houses as it was necessary to get the guns and planes, Labour is ready.

And housing ought to be dealt with in relation to good town planning – pleasant surroundings, attractive lay-out, efficient utility services, including the necessary transport facilities.

There should be a Ministry of Housing and Planning combining the housing powers of the Ministry of Health with the planning powers of the Ministry of Town and Country Planning; and there must be a firm and united Government policy to enable the Ministry of Works to function as an efficient instrument in the service of all departments with building needs and of the nation as a whole.”

In Cardiff, James Callaghan recalled:

“Most questions were about demobilisation from the Forces or housing shortages. In my innocence and good faith, I promised rapid action on both and during the campaign my main slogan became: ‘We built the Spitfires. Now we can build the houses’”.  

In Bishop Auckland, Hugh Dalton remembered:

“The big issues were pensions, housing and fear of a return to pre-war unemployment.”

At Ebbw Vale, Aneurin Bevan, picking up on the mood of the times, argued that:

“Low rents, spacious homes fitted with all the labour-saving appliances invented by modern domestic science, can be made available to all only if the task of house-building is organized on a national plan”.

In Preston, the Conservative MP, Julian Amery, described the grim reality for many:

“Much the biggest issue was housing. No new houses had been built since the war and there was fearful overcrowding. It was quite common to find eleven or twelve people sleeping in a single room, and in many of the slum districts there was virtually no sanitation”.

Winston Churchill’s daughter, Sarah, describes the day-to-day impulses that led many to put their trust in Labour. In a letter to her father, she explained that:

“The people I know who are Labour, don’t vote Labour for ideals or belief, but simply because life has been hard for them, often an unequal struggle, and they think that only by voting Labour will their daily struggle become easier. They are all decent people who want an easier and gayer life”.

The historians are in full agreement. A.J.P. Taylor recognized the main concerns of the electorate:

“They cared only for their own future: first housing, and then full employment and social security. Here Labour offered a convincing programme”.

Arthur Marwick concurred:

“Public opinion polls showed that the issue which most concerned people was housing. Labour effectively presented itself as the party most strongly committed to social reform.”

Angus Calder agrees:

“Labour had been elected, above all, on the issue of housing”.

This was ‘retail politics’ at its most potent. As the historian Paul Addison concludes in ‘The Road to 1945’:

“A simple but vital point about the 1945 election is that Labour put the material needs of the average family above all else in its campaign”.

And Labour delivered. Over the next 5 years, Labour built one million new homes.

Of course, the situation in 2020 is radically different to the challenges of 1945. But there are some real parallels.

Recent analysis by Nathaniel Barker for ‘Inside Housing’ has revealed that areas with the most overcrowded housing have been worst hit by COVID-19. The area with the highest COVID-19 death rate (144.3 deaths per 100,00) and the biggest housing overcrowding problem (25.2% of homes are overcrowded) – is Newham in east London. Just as with the wartime blitz, there is a clear London focus to the problems caused by overcrowding. Of the 30 areas with the highest percentages of households living in overcrowded conditions, Barker explains:

“26 are in London. Part of that can likely be explained by the acute affordable housing shortages in the city”

Over the next few years, Labour needs to learn from the 1945 experience, put the needs of the people at the forefront and develop a social housing programme for the 2020s and beyond.

‘Cheer Churchill. Vote Labour’ – The story of the 1945 General Election is available in e-book and paperback format at: https://www.amazon.co.uk/dp/B08975HFS7/ref=cm_sw_r_tw_dp_U_x_4Xc2Eb4B0AVT1 via @AmazonUK

All proceeds from the sale of the book will be donated to Foodbanks in Westminster.

<span class="has-inline-color has-accent-color"><strong>Paul Dimoldenberg</strong></span>
Paul Dimoldenberg

Paul Dimoldenberg was first elected to Westminster City Council in 1982. He was Leader of the Labour Opposition Group from 1987-1990 and from 2004-2015. He is the author of ‘The Westminster Whistleblowers’, published by Politicos in 2006, which tells the story of the Westminster ‘Homes for Votes’ scandal of the 1980s and 1990s.