HC Deb 24 May 1966 vol 729 cc261-2
23. Captain W. Elliot

asked the Minister of Housing and Local Government by what percentage the price of new houses rose in Great Britain in 1965.

44. Mr. Pym

asked the Minister of Housing and Local Government by what percentage the price of new houses rose in Great Britain in 1965.

Mr. Mellish

About 10 per cent. for a private house and 12 per cent. for a local authority two storey 3 bedroomed house.

Captain Elliot

Is it not deplorable that the policies of the right hon. Gentleman have not only succeeded in reducing the number of houses built for owner-occupation but also caused a dramatic increase in their prices? Would he not agree that the increase in price of local authority houses is directly responsible for the great increase in rents in many cases?

Mr. Mellish

In the local authority sector, one of the reasons for the increase in prices is the fact that we are insisting on improved standards—we have minimum Parker Morris standards—and that, in the building market generally, there has been a substantial increase in the cost of labour and materials. Average weekly earnings rose by 9 per cent. and materials by 4 per cent. Although we, too, deprecate the rise in prices, this is not something which has come about suddenly under the Labour Government. It happened consistently under the Conservatives.

Mr. Rippon

Whatever may have hapened under a Conservative Government, does the hon. Gentleman remember that the Prime Minister gave election pledges in 1964 to cheapen the cost of housing? When will the cost of housing be cheapened?

Mr. Mellish

The right hon. and learned Gentleman has, of course, made all his General Election speeches and they evidently got him personally back to the House, although not his party. The right hon. and learned Gentleman knows that there are adequate reasons why prices have risen in the last year, but we shall be judged on our record in a full period of office.

Mr. Boyd-Carpenter

In the light of his Answer to Question No. 14, can the hon. Gentleman now say whether it is the policy of the Government to take steps to increase or to diminish house prices?

Mr. Mellish

We shall take whatever action we possibly can to encourage those who wish to buy their own homes at prices cheaper than for many years past. The right hon. Gentleman must be careful. He is asking us to promote legislation to control house prices, and there may be something in that.