HC Deb 14 July 1964 vol 698 cc1006-8
9. Mr. Boyden

asked the Minister of Housing and Local Government and Minister for Welsh Affairs what is the latest average tender price for three-bedroomed houses as approved by him; and how this figure compares with that for the same date in 1963, 1959 and 1951, respectively.

Sir K. Joseph

The latest figures relate to the first quarter of 1964, when the average tender price for a two-storey three-bedroom house, adjusted to a standard area of 900 square feet, was £2,210. The figures for the corresponding quarters of 1963, 1959 and 1951 were £2,047. £1,489 and £1,173.

Mr. Boyden

Has the right hon. Gentleman noticed the reply that I received yesterday from his right hon. Friend the Minister of Public Building and Works that the price of bricks increased by 18 per cent. between May, 1960, and May, 1962, by a further 7 per cent. in the next year, and by a further 7 per cent. the year after that? What steps is the Minister taking, in conjunction with his right hon. Friend, to try to keep this inflationary effect on building costs down?

Sir K. Joseph

The steps the Government are taking are to encourage local authorities to place, where suitable, five-year contracts, to join in groups to get the maximum benefit from large buying power, and to adopt, where suitable, competitive building systems as well as traditional systems.

Mr. Ridley

Is it not true from the figures my right hon. Friend has given that the cost of such accommodation has in fact risen less over the 13 years than the average increase in earnings and wages?

Sir K. Joseph

Yes; my hon. Friend is quite right. House prices increased by 88 per cent. between 1951 and the first quarter of 1964. The average earnings of manual workers increased between 1951 and October, 1963—the latest available figures in the Ministry of Labour statistics—by 104 per cent.

Mr. Boyden

Would it not be better if the Minister concentrated on some of the other major causes of inflation, such as high land prices, interest charges and the matter I raised, rather than constantly denigrating the building workers, whose efficiency has increased very much and who deserve the rates they get?

Sir K. Joseph

No; I think that my hoc Friend's supplementary question supports the view that people can afford to buy the houses or to rent the houses, despite the rise in prices.

Mr. Stainton

Would my right hon. Friend also inform us whether an important aspect of this problem is that of productivity? Have not wages on sites virtually doubled since 1951, whereas output per man hour has risen by significantly less?

Sir K. Joseph

That is another question, of which I should like to have notice about housing. The building industry has raised productivity, certainly in housing within my field, substantially in some areas, and we hope mat this trend is continuing now.

Mr. M. Stewart

In giving figures of average earnings will the Minister remember that they are earnings and not wage rates and that the figure of earnings which keeps pace with house and rent prices is often maintained only by working very long hours?

Sir K. Joseph

Yes, I will remember that: but will the hon. Gentleman remember that the price of houses and the movement in the price of houses includes some improvement in the standard of equipment that goes into these houses. This has happened particularly over the last three years.

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