Labour is inviting private firms to profit from its 1.5 million new homes pledge – it’s written into Rachel Reeves’s budget.

In her budget, she pledged money for the Build to Rent sector in order to ‘crowd in’ private investment – ensuring that rich shareholders will get passive income from something that we all need – a place to live.

The Canary explains:

Investors know that renting out essentials is a guaranteed way to make the most money.

You get regular, passive income on resources people automatically need while retaining ownership of the ‘asset’ itself. Investors can then use the ‘product’ as collateral or eventually sell it.

What does this mean? According to research by the Common Wealth think tank, quoted in the Canary article,

Private investors want to maximise their profits at every avenue.

This is at odds with providing affordable and social housing. The thinktank notes that when asset managers Blackstone bought up and renovated homes in Stockholm, rents increased by a whopping 43%.

The report further shows that a “structural undersupply” of housing leads to year on year rent rises.

So Rachel Reeves’s invitation for private investors to build Labour’s 1.5 million houses is in fact letting parasites into the housing market to prey on the vulnerable.

The article states that, for government,

housing is a risk free investment for the government to make through public ownership, which can be organised on the basis of need and affordability.

So Reeves has actively passed a chance to bring in money, via affordable rents, that the government could invest in other policies – in order to further enrich already-rich individuals.

StarmerLabour supporters complained when others said his party was just Tory 2.0.

Now, every day, we see more proof of it.

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