Burnham’s Housing Boom: A Recipe for Success or Failure?

The UK’s housing crisis has been a persistent problem for successive governments. Andy Burnham’s pledge to deliver 1.5 million new homes is a welcome respite from unaffordable rents and dwindling social housing stock. The question on everyone’s mind is whether he can deliver.

Statistics paint a grim picture: the average house price in England has skyrocketed to £300,000, outpacing average earnings by a factor of eight. This has priced millions out of the market, forced them into long waiting lists for social housing, or stuck them with unaffordable rents. Labour’s target of building 1.5 million new homes is already faltering, with only 204,000 new dwellings delivered in the past year – a far cry from the required annual rate.

Burnham’s record on housing in Manchester offers some hope. Under his tenure as mayor of the Greater Manchester Combined Authority, the city experienced a significant increase in new home construction, adding an impressive 5.3 homes per 1,000 people to its stock. While this is not exceptional compared to other city regions, it suggests that Burnham’s approach may be more effective than his critics claim.

A key factor behind Manchester’s success appears to be the emphasis on social rent housing. Unlike many other cities, where property developers are required to provide a proportion of affordable housing, Manchester has traditionally taken a more relaxed approach. This allowed Burnham to focus on building social housing directly, rather than relying on private sector providers. The results speak for themselves: during his tenure, the number of new social rent homes in Greater Manchester increased by 733% – a staggering rise that far outpaces other northern English city regions.

However, replicating this model across England is uncertain. Burnham’s promise to deliver 10,000 new council homes in Greater Manchester is ambitious, but it raises questions about his approach. Will he rely on private sector developers to build social housing, or will he invest in direct council-led construction? Funding is also a pressing issue: if councils are to directly build tens of thousands of new homes each year, they will require significant increases in budgets – a prospect that may be unrealistic given the current economic climate.

Burnham’s definition of “council housing” is crucial. Will it include social rent housing delivered by housing associations and made available at reduced rents? Or does he plan to focus solely on council-owned and built homes? Clarifying this will be essential if he is to deliver his promise.

The UK’s housing crisis cannot be solved overnight. Burnham’s government must tackle the legacy of decades of underinvestment in social housing, which has led to a collapse in council house construction since the 1980s. The Thatcher-era right-to-buy policy, while well-intentioned, has had devastating consequences – the sale of millions of council homes has left a gaping hole in the nation’s affordable housing stock.

Council house construction was once a thriving industry, with local authorities building almost 200,000 new homes annually in the 1950s. However, as governments began to favor private sector development and right-to-buy policies, this expertise atrophied – leaving councils ill-equipped to build the homes that are so desperately needed.

Burnham’s housing boom provides a glimmer of hope in an otherwise bleak landscape. However, it also raises questions about his approach and ability to deliver on his promises. Can he overcome the legacy of underinvestment and build the homes that are so desperately needed? Only time will tell.

The coming months will be crucial in determining whether Burnham’s vision for housing is more than just a pipe dream. His government must tackle the complex web of issues driving the UK’s housing crisis, from high house prices to planning reforms. The clock is ticking – and it’s not just the 1.5 million homes that are at stake, but the very future of affordable living in England.