HC Deb 29 March 1972 vol 834 cc423-5
29. Mr. O'Halloran

asked the Secretary of State for the Environment what is his estimate of the cost of land for housing purposes per acre in the greater London area; and if he will make a statement.

Mr. Amery

Land costs vary so widely in London that any estimate of average cost would not be meaningful. Because of the shortage of land the cost is generally high but I shall ensure as far as possible that the housing programmes of London authorities are not affected by this. I am also co-operating with several authorities in findings ways of making land available at reasonable cost to provide houses for owner occupation by Londoners. The main vehicle in this has been the London Action Group.

May I here pay tribute to my hon. Friend the Member for Southend, West (Mr. Channon) for all his work in housing as Under-Secretary. He is promoted to a post of honour and danger, though I cannot believe that anyone in Ireland would ever shoot a Guinness.

Mr. O'Halloran

I am grateful for that reply. Is the right hon. Gentleman aware that available land in Islington is costing over £150,000 an acre and that houses which three or four years ago would sell for £5,000 to £6,000 are costing up to £20,000? What is the Government's policy on this ruthless exploitation in land and house prices?

Mr. Amery

The London Action Group is seeking first to identify where land is available for new building, whether by local authorities or private developers. When it has reported, as I hope it will shortly, I shall consider what action to take next to fulfil the possibilities which its scrutiny and reports should open to me.

Mr. Frank Allaun

But even if more land is made available, will not the price still remain exorbitant? If planning permission is given, do not potato fields turn overnight into gold mines? What solution have the Government to this price problem other than some form of public ownership, which for ideological reasons the present Government are unlikely to apply?

Mr. Amery

I do not think it is a question of ideology. The main point is to get more houses built. The more houses built, the less will be the pressure on the housing market.

Mr. Freeson

Will the right hon. Gentleman now reply to the question put to him by my hon. Friend the Member for Islington, North (Mr. O'Halloran)? The right hon. Gentleman was asked about land and property prices. He answered in terms of seeking to make more land available. Is he aware that if land is rezoned for building purposes that pushes up the price even further, as my hon. Friend the Member for Salford, East (Mr. Frank Allaun) has just pointed out? What action do the Government propose taking at least to contain the rate of increase if not to bring the rise in prices to a halt?

Mr. Amery

The hon. Gentleman's sense of economics is very curious. If more land is made available and more houses are built, the price is likely to be stabilised.

47. Mrs. Fenner

asked the Secretary of State for the Environment if he will make a statement on the progress being made in the consultations between his regional officers, local planning authorities and developers on the release of land for building.

Mr. Graham Page

Valuable contacts have been made in all regions and the difficulties are being tackled. This regional work will continue for as long as it is needed.

Mrs. Fenner

My hon. Friend is aware how vital it is to release more land, judging from his answers to questions on stabilising the cost of house building. I had hoped that he would have been able to answer my Question in terms of acreages.

Mr. Page

My hon. Friend will know, as she represents Rochester and Chatham, that the Maidstone-Medway area is one of the immediate growth areas in which land is available if developers will apply.

Mr. Denis Howell

As the Government's case for the abolition of the Land Commission was that it would bring down the price of land and provide more land for building, can the Minister tell us of any region where that has happened?

Mr. Page

I do not know whether the hon. Gentleman intends to restore the Land Commission, but it did no good at all. We are doing far better with the regional strategies and with the assistance of the local planning authorities.

Sir Bernard Braine

What action is my hon. Friend taking about those authorities which are failing to release sufficient white land for development in areas where there is acute pressure for more housing, as a result of which house prices are rocketing? I have South-East Essex particularly in mind.

Mr. Page

Every applicant can appeal to my right hon. Friend the Secretary of State. He has said that he will favourably consider appeals in areas of major growth or medium growth indicated by the South-East regional strategy.