Gentrification

The New Era Housing Estate Saga, And The Price Of Gentrification

Samuel Hooper2 Comments

 

Back in August I was on London Live TV alongside politics.co.uk editor Ian Dunt, debating the contentious issue of gentrification, and whether it is something to be welcomed or a shameful exercise in social cleansing. Never one to duck a challenge, I argued in cautious defence of the principle of gentrification and the seemingly interminable dereliction-hipsterisation-bankertown cycle, and said that the benefits of gentrification would outweigh the costs – if only Britain would start building new housing supply at the rate and volume we need.

Three months later and I stand by my argument. But as successive governments have failed to stand by their pledges to tackle the housing crisis, gentrification rightly remains a hot-button issue; we should all be concerned that increasing numbers of people are not just being priced out of their neighbourhoods into slightly cheaper adjacent areas, but are having to contemplate moving half way across the country, far from families and support networks, in order to be able to afford to keep a roof over their heads.

This blog has always been an enthusiastic proponent of free markets and maximal personal freedom, and will continue to fight that corner. But when housing supply is artificially restricted through NIMBYism, political cowardice and simple bureaucratic ineptitude, interventions in the market become not only plausible but even desirable. Since the government is in effect already picking winners – choosing to bless existing homeowners with rapidly increasing house prices at the expense of those trying to get on the property ladder or live anywhere in the south east of England – any possible reticence about siding firmly with the underprivileged, the vulnerable and the low paid goes out the window.

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TV Debate – Is Gentrification Good For London, Or Social Cleansing In Disguise?

Samuel Hooper2 Comments

gentrification

 

Today, I will be back on the Headline London panel on London Live TV, debating whether gentrification is a good thing for London or an insidious form of social cleansing.

My overall take is that gentrification and the urban renewal it brings are a positive phenomenon, leading to the revitalisation of communities, the opening of new businesses and amenities, and increased economic growth for the neighbourhoods concerned. We do, though, have to consciously work to mitigate the negative side effects.

At present, we have a cycle that goes something like this:

1. Area is identified as relatively poor and un-redeveloped

2. Neighbourhood becomes attractive to creative types and young families

3. Hipsterisation and gentification begin

4. Improvements lead to rent and house price increases

5. Wealthier people arrive, displacing hipsters and original residents

6. Neighbourhood’s prosperity causes the cycle to begin again in adjoining areas

We need to do more to arrest the cycle at the point after young creative types and families move into an area and begin the process of gentrification, but before the inevitable rent/price hikes force all of the existing residents out. And you can’t do this without looking at the broader question of nationwide housing supply, where none of the main political parties have anything meaningful to say. For the Tories, it is not in their interests to allow a big increase in the housing stock, because the stagnation/fall in house prices would hurt their core voters. And Labour barely believe in home ownership at all, and only seem interested in building new social housing in furtherance of their goal to make us all clients of the state.

Achieving a balance means compromise and accepting that the pricing out of some long-term residents is the inevitable cost of urban redevelopment, but tempering this harsh truth with innovative solutions of keeping neighbourhoods viable for lower-income people. This means we have to be less squeamish about things like “poor doors” in new buildings, where some facilities are reserved for full price paying homebuyers.

Finally, we need to understand that short of buying your own property, no one has the inherent “right” to live in a certain area, especially if taxpayers end up subsidising them to do so. We already have a progressive tax system in London where wealthier citizens contribute more. Yes, it is in everyone’s interest that neighbourhoods are mixed, but Londoners can only be expected to pay so much to ensure that this happens.

I will be on London Live TV’s Headline London show today, from 1230-1330 UK Time, participating in a panel discussion in which we will debate this topic.

You can watch on Sky 117, Virgin 159 or Freeview 8 from 1230 onwards.

You can also watch online here.