Star fund manager Richard Buxton says the UK’s housing crisis could see Labour leader Jeremy Corbyn become prime minister as capitalism fails the younger generation.
Writing for The Telegraph, Buxton says the Conservative Party needs to get to grips with the shortage of affordable homes, even if it means paving sacrosanct countryside.
The manager of the £2.3bn Old Mutual UK Alpha fund says the stock market is not pricing in the probability of a Corbyn-led government.
He says: “Unless the Government confronts the uncomfortable truth that we have to build thousands of new houses on green belt land, then the prospect of a fiercely redistributive socialist government is firmly on the horizon.”
“Look at speeding up planning processes, threaten to tax housebuilders for sitting on land banks – the market has heard it all before and nothing changes.”
Earlier this month, Old Mutual confirmed the sale of OMGI for £600m. Buxton and the senior management team is partnering with private equity house TA Associates to buy the single strategy asset management business, which manages £25.7bn.