HC Deb 19 April 1972 vol 835 cc500-1
34. Mr. Willey

asked the Secretary of State for the Environment what has been the increased amount on the average price of new private houses in the Northern Region since June, 1970, to the latest available date.

Mr. Eyre

The average price of new private houses in the three northern regions of England mortgaged with building societies is estimated to have been £4,669 in 1971, compared with £4,257 in 1970, an increase of 10 per cent.

Mr. Willey

Is the hon. Gentleman aware that in parts of the North East the increase is higher than 40 per cent.? Is he aware, further, that this increase demonstrates even more the appalling escalation in house prices since the present Government took office, and that it is hypocritical to talk of a property-owning society if young married couples find it quite impossible to think of buying houses? In congratulating the hon. Gentleman on his new appointment, may I plead with him to tell his colleagues in his Department that we must have a change in this disastrous piece of Government policy?

Mr. Eyre

I must remind the right hon. Gentleman that there was a rise of 21 per cent. in the price of private sector houses in the years 1967–70. Recently there has been a great upsurge in the demand for home ownership. Increases in incomes have enlarged the base for mortgage credit so that there are more willing and able purchasers today than before.

Mr. Evelyn King

Is not it possible that the increase in the price of a house is partly accounted for by the increase in the price of land? With that in mind, does my hon. Friend recall his answer to a Question just now when he said that insufficient information was available in his Department to give any sensible reply? I find this very worrying. Will my hon. Friend ensure that proper statistics are obtained?

Mr. Eyre

The reason why there could not be a detailed reply to the earlier Question was that it was framed with inaccurate definition. To reply to my hon. Friend's question, the urgency of bringing as much land as possible on to the market is fully appreciated, and strong efforts will be made in this respect. However an increase in the supply of private houses is the best answer to rising house prices.

Mr. Frank Allaun

Is not it a fallacy that house prices are soaring because developers are starved of land by local authorities? Is not it a fact that in the south-eastern counties alone there are building permissions for 150,000 houses which have not been taken up by builders? Are not speculators holding on to land with a view to securing a profit on selling shortly afterwards?

Mr. Eyre

It must be remembered that there are good reasons for developers having a "bank" of land to provide for future development. That is essential for the planned development of houses coming into the market. I stress that in the period from November, 1971, to February, 1972, starts in the private sector were 35 per cent. up on the same period a year earlier. The trend is moving in the right direction.