Why Help to Buy is another ill-thought through idea by the government

The aspiration of home ownership has long been a somewhat inherent British attitude. Unlike in countries like Germany where a larger number of people rent their home, buying a house in the UK is almost viewed as a social rite of passage. Conversely, it’s led to some attitudes of people snobbishly turning their noses up at those who choose (or are compelled) to rent long term and contributed to the unwarranted stigma of living in social housing.

There are obvious advantages (and disadvantages) to buying a home over renting. But for many, it’s often a sign of successfully climbing the social ladder. Governments in recent history have therefore sought to capitalise on that and facilitate home ownership for those that would otherwise be frozen out from getting on the property ladder. Most recently, the government has introduced Help to Buy with the same intention. Yet like many government schemes, populism trumps pragmatism and Help to Buy is no different.

Help to Buy is allegedly aimed at people for who raising a deposit is their main obstacle to buying a home. Typically, that should mean people who may be on modest incomes that prohibit them from saving or those without the traditional middle class route to a deposit from parents, family or inheritance. With Help to Buy a deposit of as little as 5% is required. While a mortgage of up to 95% is made available via a traditional lender with a seven year government backed guarantee of 15% of the mortgage.

In principle, Help to Buy seems sensible and will undoubtedly open up home ownership to a group that traditionally may not have had the social or economic clout to achieve it. Similarly, at face value, so did Right to Buy (Margaret Thatcher’s policy of giving social housing tenants the opportunity to buy their rented home at a discount). Though just as an acute lack of social housing has been a legacy of Right to Buy, the potential consequences of Help to Buy are far from completely positive.

In defence of Help to Buy, David Cameron said "As prime minister, I'm not going to stand back while people's aspirations to get on the housing ladder, to own their own flat, to own their own home, are being trashed." Well, that’s very noble of him, isn’t it? Cameron’s Conservative-led coalition government is responsible for some of the least egalitarian social and economic policies since Thatcher. So why is his stance different when it comes to home ownership? Ideologically, home ownership is a very conservative (and therefore Conservative) ideal so perhaps Help to Buy shows Cameron hasn’t forgotten his party’s ideological roots.

While Help to Buy is intended to help those who would struggle to raise a deposit, there are many potential eligible applicants who aren’t struggling per se to raise the cash for a down payment. Rather, many well-off applicants will be perfectly able to raise the money but Help to Buy will facilitate not needing to do so. Are they the kind of applicants that come to mind when thinking of those struggling to raise a deposit? I think not. Moreover, with Help to Buy being offered on properties with a value of up to £600,000, it’s highly questionable that anyone seeking to buy a house of that value would be struggling with a deposit. As a result, I’m cynical of who Help to Buy is really primarily intended to help.

The government seemingly also hasn’t considered the impact of increasing the amount of money being lent in the housing market. Nor has it considered the consequence of increased demand for property when it’s allegedly trying to help first time buyers struggling with their deposit.

By guaranteeing 15% of a mortgage, the government is giving lenders more confidence through Help to Buy. That means more money will be lent with a knock-on effect of higher house prices and the likelihood of a housing bubble. That won’t help first-time buyers but merely push home ownership further out of their reach. It’s basic economics but a principle the government has ignored. Similarly, they’ve not taken heed of recent history in how high loan-to-value mortgages can lead to disastrous outcomes for the housing market and the wider economy. And compounded by a scheme where the government guarantees 15% of the money borrowed, it’s not difficult to see the significant risk Help to Buy presents to the economy.

Supporters of Help to Buy will argue that it will help to stimulate the housing market. But it could instead precipitate events akin to the subprime mortgage crisis with more irresponsible borrowing. The government has assured critics of Help to Buy that stricter eligibility for borrowers will mitigate that risk. Nonetheless, I’m sure lenders will find a way to creatively circumvent that if they desire. After all, there is a precedent for it and sadly the financial sector has enough influence over the government to make it happen.

I’m not averse to enabling home ownership for those that aspire to it. Indeed, I’m sure Help to Buy will make that a reality for some people who would otherwise be unable to get on the property ladder and I’m not bemoaning that. But the wider consequences of the scheme could be dire. Help to Buy doesn’t address the ongoing concern of providing affordable housing; it simply exacerbates it at the expense of the very people it’s claimed to be assisting.

The demise of Choice FM

The announcement that Choice FM would be rebranded as Capital Xtra (very unoriginal given BBC 1Xtra) marks the end of an era in black British history (and as some have pointed out, ironically so at the beginning of Black History Month in the UK). Choice FM was the first licensed radio station in the UK with a remit to play black music and brought black music from the shadows of pirate radio and specialist DJ shows on other radio stations. But more importantly, it was another overdue step that validated the impact of black British culture outside of the black community.

Choice FM didn’t maintain all the rawness of some pirate stations at the time but rightly so. It was a legal radio station that sought to provide professionalism alongside black music while retaining authenticity in its music and overall feel. To some, that would surely have appeared an impossible contradiction. However, it created the blueprint for subsequent arrivals to the FM and DAB dial such as BBC 1Xtra and Choice FM Birmingham (which ironically, became Galaxy before becoming Capital Birmingham with a similar fate to Choice FM).

Commander B’s show championed UK garage and hosted the much anticipated clash between Dizzee Rascal and Asher D (Ashley Walters). Soca, reggae and bashment could be heard during peak hours. Hip hop by underground UK artists was also played alongside mainstream and less commercial American hip hop by DJ 279 (who was recently let go to make way for Tim Westwood’s arrival at the station with his brash presenting style and more club friendly brand of hip hop and latterly grime). Before Choice FM, only a pirate radio station could provide this.

In addition to its music output, Choice FM catered to the black community with its advertising and championing of community issues. Its support from the black community wasn’t solely because it played black music (which isn’t exclusively for black people). It was because it was a radio station that represented the black community within a broader media landscape. That was until Capital became involved.

Black music became increasingly popular throughout the 90s in the UK. American artists of black music genres experienced increased commercial success and UK artists followed suit. While Choice FM’s initial target audience may have been the black community, it was now catering to a broader audience. And as social class came to be a bigger social identifier than race, many of the issues Choice FM championed were also now applicable to a wider group that were bound more by social experiences than race. Indeed, many of Choice FM’s campaigns such as Peace on the Streets were not directed exclusively at the black community.

Consequently, Choice FM offered more commercial viability and Capital wanted in. They became a minority shareholder in Choice FM with the radio station citing Capital’s experience in commercial radio being brought to the station. In 2004, Capital assumed full control of Choice FM and immediately the writing was on the wall. Remember when Geoff Schumann and other DJs were unceremoniously sacked from the station? On reflection, Capital Xtra doesn’t seem that much of surprise.

Choice FM’s content also changed. Akin to Kiss FM being taken over by EMAP, Choice FM gradually moved away from its roots and its original listeners, myself included, drifted away only to tune in occasionally. Still, there were glimpses of the old Choice FM. Bashment and reggae was marginalised but veteran reggae DJ Daddy Ernie remained at the station and Martin Jay continued to broadcast his Caribbean Affair weekly soca show. Nonetheless, neither, along with other DJs, will transfer to Capital Xtra. Although, the authenticity of their shows would only appear an anomaly within what I expect will be a largely formulaic and plastic Capital Xtra schedule.

So Choice FM is no more. Capital Xtra is more than a rebranding, it’s a new station and its output will reflect that. Many are angry about the demise of Choice FM but if you look at the precedents with Kiss FM and Choice FM upon being taken over by Capital, should we not have seen this coming? Cynically, it could be said that this was a long term plan when Capital first acquired its minority share in Choice FM.

The demise of Choice FM isn’t just about black music. Of course, soca will probably only return to the consciousness of BBC 1Xtra come Notting Hill Carnival and other less commercial genres will now increasingly rely on internet and pirate radio. More significantly, this is about the marginalisation of black British culture from the mainstream. Consider the DJs that were let go from Choice FM, both prior to the beginning of Capital Xtra and when Capital assumed full control of Choice FM. Irrespective of their respective race, they and the genres they played represented the black British community and black culture. Yet they aren’t deemed commercially viable by the likes of Global Radio (the company that owns Capital Xtra and previously Choice FM).

Even the rebranding to Capital Xtra suggests Global Radio wants to distance the new station from Choice FM as a brand that was associated with black music. Perhaps the ‘Xtra’ was ignorantly deemed suitably ‘urban’ (not black) by Global Radio to still meet the requirements of the licence Capital Xtra will inherit from Choice FM (although I expect Capital Xtra will eventually seek a change in its licence obligations to align it more with its preferred music policy). Though what does that say about media ownership in the black community if the few platforms that do exist eventually disappear beyond recognition due to corporate demands? Will Capital Xtra even bear a modest resemblance to Choice FM? I’ll probably only find out through hearsay as I shan’t be listening to the new station.

The black community and beyond has lost a valuable platform in Choice FM and one which is responsible for a seminal chapter in contemporary black British history. Without Choice FM, it’s unlikely there would be BBC 1Xtra (which despite not having commercial pressures has also increasingly sought a diluted feel from its earlier days) or the success of much black music in the UK. Despite its demise, Choice FM certainly leaves a legacy and perhaps also a cautionary tale.