HC Deb 17 May 1972 vol 837 cc522-4
31. Mr. William Hamilton

asked the Secretary of State for the Environment what has been the average annual increase in the prices of houses built for sale in each of the last five years.

Mr. Amery

The average price of new dwellings in Great Britain mortgaged with building societies was 6 per cent. higher in 1967 than in 1966. On a similar basis prices were higher by 5 per cent. in 1968, 7 per cent. in 1969, 6 per cent. in 1970 and 13 per cent. in 1971.

Mr. Hamilton

Is the right hon. Gentleman aware that I was more or less aware of those figures before I tabled the Question? The Question was tabled simply to indicate the increasing impossibility, notwithstanding the nonsense the right hon. Gentleman uttered in answer to Question No. 8, of young married people getting a house. Does not the right hon. Gentleman know that even in some of the most unfashionable London suburbs the average rent of a co-ownership, non-profit-making house is £10 a week exclusive of maintenance and rates? I have figures to substantiate this. Very few young married couples can afford that amount of rent and maintenance.

Mr. Amery

I hope that the hon. Gentleman, whose interest in these matters I appreciate, will allow me to help him with his researches into these matters. It never was easy for a first-time purchaser to buy a house, but if anything it appears to be rather less difficult today. The average age of borrowers from building societies was a year or two less in 1971 than it was in 1967 and the number of borrowers under the age of 25 was 3 per cent. higher. This is a serious problem. It is not a party problem. The truth which we must recognise is that people have always wanted to own their own homes, but now far more people have the money to do so than had it before.

Sir Harmar Nicholls

Is my right hon. Friend aware that the Question and answer pinpoint the real problem facing the nation today? This is a matter that ought to be faced not merely by a departmental Minister, excellent though he is, but by the whole Government, the whole trade union movement and the whole nation. The inflation in house prices reflects everything that is happening in the country today in regard to soaring prices everywhere arising from wage increases.

Mr. Amery

I should be the first to join my right hon. and hon. Friends in all measures that can possibly be taken to resist wage inflation. The one satisfactory aspect of the present situation that I can see——

Mr. Hamilton

Nothing is satisfactory.

Mr. Amery

Yes, there is the steady growth of home ownership.

Mr. J. T. Price

Is it not becoming increasingly clear to the House and to millions of intelligent people throughout the country that the greatest single factor in the constant inflation which we all deplore is not wage inflation but the scandalous exploitation of land and property by greedy elements in society which are compelling the trade unions to follow and to recoup themselves for the scandalous rents and scandalous land prices that are becoming counters in speculation by conscienceless people who are running the big trusts and combines with which many hon. Gentlemen opposite are personally involved?

Mr. Amery

I repudiate as unworthy of the hon. Gentleman any suggestion that there is anyone in the Government with an interest in the inflation in house or land prices. I think that the hon. Gentleman has got the sequence wrong. It is the increased demand which has put up the price of houses and the increase in the price of houses which has put up the land values.

Mr. James Hill

Does my right hon. Friend agree that for many years local authorities have been hamstrung in putting in the services and sewerage systems so that land can be brought on to the market? Does my right hon. Friend agree that the Secretary of State's remarks two or three weeks ago could be very helpful?

Mr. Amery

I agree entirely with my hon. Friend. There has been restriction in the past, but under the present wise Administration this is being brought to an end.

Mr. Freeson

Will the right hon. Gentleman consider at least some positive suggestions to contain this situation—for example, action at least to contain the return on investment in land purchases such as has been put to the Department and so far rejected, and also an undertaking to consider the need to increase massively the rate of local authority building at reasonable rents as the biggest single way in which inflation could be restrained in land and property in big city areas?

Mr. Amery

As the hon. Gentleman knows very well, under the present Administration, unlike under the previous one, there is no restriction of any kind on local authority programmes. I would be totally opposed to any restriction of credit for private building. I believe that the expansion of building in both the public and the private sectors will bring supply more closely into balance with demand and that this is the only sensible way of trying to stabilise prices.