One of the candidates for the deputy leadership of the Labour Party says she wants pensioners to invest in bonds which would fund house building.
Stella Creasy - who in the past has been an outspoken critic of estate agents and letting agents for their fees and alleged lack of transparency - has told The Independent newspaper that action is needed because the average age of a first time buyer is now 37.
The newspaper says she urges the party to campaign for a bond dedicated to house building and home-ownership for first-time buyers, which pensioners would invest in and from which they would receive “a good return.”
Creasy, the MP for Walthamstow, gives no other details of her proposal, although it sounds similar in principle to one put forward by David Lammy, another London Labour MP - he is seeking the nomination as the party’s candidate for the mayoral election in the capital.
Lammy says he would sell homes at cost-price, using money from a £10 billion London housing bonds issue. He says he believes the homes could be sold for £150,000 having been built on public land and sold with conditions on the leasehold intended to stop high price rises.
Buyers would eventually be able to sell for up to 10 per cent above cost price, but only if they had lived in the home for a substantial period. Lammy says those trying to sell after a shorter period would get “significantly lower than 10 per cent” appreciation. The leasehold would also prevent the home being sold to someone who already owned a property.