As the Labour Party in Harpenden & Berkhamsted, we are deeply concerned about the skyrocketing housing costs under the current Conservative government.

Recent data analysis by the local Labour Party from the Office for National Statistics shows the severe impact of rising mortgage and rent prices on households in our constituency, illustrating the broader economic mismanagement by the Conservatives.

The Combined Impact of Rising Housing Costs

Data analysis from ONS published in April 2024, shows a significant portion of households across the constituency are experiencing rising housing costs at some of the highest levels in England and Wales.

Approximately 17% of all households in the constituency faced increasing mortgage costs in 2023 due to the disastrous Tory Truss/Kwarteng budget in September 2022 which saw an immediate jump in interest rates of between 1% and 2%. The Resolution Foundation estimated that the government also lost £30 billion as a result of this budget.

Households saw an average monthly mortgage increase of £303, escalating from £1,402 in 2022 to £1,705 in 2023. This represents an 8.2% decrease of disposable income for an average household, pushing housing costs for local mortgage holders to consume about 45.8% of average disposable income.

Renters in Harpenden & Berkhamsted are also feeling the strain of the Conservative Government interest rate rises, with an average rent increase of £132 per month, rising from £1,422 in 2022 to £1,554 in 2023. This hike accounts for a 3.6% decrease of disposable income, leaving housing costs at around 42.15% of the average disposable income for local renters.

It is also important to note that Rishi Sunak has allowed energy prices to soar while companies such as British Gas, Shell and BP are raking in huge profits from the high energy prices. This adds a further burden to households.

Broader Context: The Housing Crisis

The situation in our constituency is a microcosm of a larger, national crisis. The UK faces a severe housing shortage, with a backlog of 4.3 million homes that were never built under this Government. This deficit exacerbates housing unaffordability, pushing prices and rents higher and making it increasingly difficult for families to secure stable, affordable housing. The current government’s failure to meet its own targets of building 300,000 homes per year further deepens this crisis.

The social consequences of this crisis are dire. Over 100,000 households, including more than 130,000 children, are living in temporary accommodation in England, the highest level on record and costing councils £1.74 billion per year.  The lack of affordable housing not only strains family budgets but also increases public spending on housing benefits and homelessness services, which have seen significant rises over the past two decades.

If elected at the General Election on Thursday 4 July, the Labour Party will get Britain building again through:

• Building 1.5 million new homes over the next parliament, including restoring mandatory housing targets
• Supporting local authorities by funding additional planning officers
• A brownfield first approach, prioritising the development of previously used land wherever possible, and fast-tracking approval of urban brownfield sites
• Labour will take a more strategic approach to greenbelt land designation and release to build more homes in the right place

More information is available on the Labour Party website.