HC Deb 03 March 1964 vol 690 cc1117-8
10. Mr. Owen

asked the Minister of Housing and Local Government and Minister for Welsh Affairs if he is aware that the cost of house purchase continues to rise and what is now the policy of Her Majesty's Government for assisting those affected.

Sir K. Joseph

As I explained on 25th February in reply to the hon. Member for West Ham, North (Mr. A. Lewis) the rise in house prices reflects the demand. The best way to help is to make more land available and to build more houses, and that is what we are doing.

Mr. Owen

Are higher house prices and mortgage rates a reflection of Tory Party policy for a property-owning democracy? Is the right hon. Gentleman aware that thousands of young married people are frustrated in their search for homes? Is he further aware that, during the past year, the average cost of houses has increased by 7 per cent.? Would he be prepared to look at the activities of building societies and estate agents to see what impact they are having upon house prices?

Sir K. Joseph

House building for owner-occupiers has risen to record levels each year and looks like beating all records in 1964. For those who cannot quite afford the price of a new house, the Bill now going through Par- liament, setting up a Housing Corporation to stimulate housing associations, will be of great help.

Mr. Gower

Is it not the case that. in the last 10 years, one of the most significant features has been the increase in the number of owner-occupiers? Will my right hon. Friend ensure that we soon approach the American proportion of owner-occupation, which, I believe, is 70 per cent.?

Mr. W. Hamilton

As the price of land represents a very large proportion of the cost of a house, and since the right hon. Gentleman said that he would bring forward new machinery to deal with the problem, may I ask whether that new machinery is in existence now? If not, when will he make a statement about it?

Sir K. Joseph

I have said that the main way of dealing with the price of land is to release more, and this the Government are doing.