HC Deb 16 February 1972 vol 831 cc394-5
4. Mrs. Renée Short

asked the Secretary of State for the Environment what further steps he intends to take to enable more lower and middle income group families to purchase their own homes.

The Minister for Housing and Construction (Mr. Julian Amery)

Several measures have been taken to cheapen the high first cost of owner occupation. My main concern now is to improve the supply of houses to meet the strong demand which exists. To this end a number of steps are being taken, including discussions at national and regional levels with local authority associations and builders about the supply of land.

Mrs. Short

Is it not time that the Minister got out of this complacent attitude? House prices have risen by 12½ to 15 per cent. during the last year. The average price of a new house is getting on for £6,000. How on earth does he expect ordinary families, whether young married couples or whoever they are, to be able to buy houses at this sort of rate when prices are going up faster than wages and salaries? Is it not time that the Minister did something much more energetic and forceful than simply having talks with local authority associations, which will not get us anywhere?

Mr. Amery

The hon. Lady is right to be concerned—and so am I—about the rise in prices. But 50,000 first-time buyers took up building society advances last year than the year before. The percentage of option mortgages take-up, which is the lower income take-up as a rule, rose significantly. But of course more can be done and I am grateful for the support implied in the hon. Lady's supplementary question that she too would like to see a greater sale of council houses—

Mrs. Short

I did not say that.

Mr. Amery

—which would also help to stabilise the market.

Mr. Kinsey

I am grateful that my right hon. Friend should have reminded the hon. Lady about the sale of council houses. In Birmingham, in my constituency, for £5 down and between £2,000 and £3,000, working people can buy a freehold house. Will my right hon. Friend see that this continues?

Mrs. Short

They are out of work—how can they?

Mr. Amery

My hon. Friend knows well that in Birmingham there is a really progressive authority which has done a magnificent job not only of slum clearance but also in encouragement of owner-occupation.

Mr. Bob Brown

Is the right hon. Gentleman aware that his right hon. Friend allowed Newcastle City Council to sell a tract of land in Blakelaw, Newcastle, on the understanding that Cussins the builder would build houses so that people in council houses and on the council waiting list could purchase them? Is he further aware that the cheapest house that Cussins proposes to build is a terraced three-bedroomed house for £6,000? Does he really believe that that is the type of price which people in council houses or on the waiting list can afford?

Mr. Amery

As I said earlier, I am concerned about the rise in prices, but there is no doubt that the demand is there. It is the existing level of demand, backed by effective finance, which is pushing up prices as fast as they are going.