§ 14. Mr. Skinnerasked the Secretary of State for the Environment what is the latest average price of newly-built and second-hand dwellings as compared with 18th June 1970.
§ Mr. ChannonThe estimated average price of houses mortgaged with building societies in the first quarter of 1973 was £9,483 for new dwellings, and £9,283 for other dwellings. Corresponding figures for the second quarter of 1970 were £5,082 and £4,778, respectively.
§ Mr. SkinnerI suppose that that is what the Prime Minister means by the boom. We certainly got it in housing! Is the hon. Gentleman aware that the predominant reason why we have this fantastic increase in house costs is the Tory Government's Housing Finance Act and the upward spiral in rents and prices—[Interruption.]—which has lined the pockets of some of those who are shouting? Is it any wonder that property spivs and prostitutes are competing with one another to say that life is better under the Conservatives?
§ Mr. ChannonThe hon. Member's supplementary is worthy of his usual comments in the House.
§ Mr. McCrindleDoes my hon. Friend not agree, that disagreable as these figures undoubtedly are, there has nevertheless been a welcome reduction in the rate of increase over recent months? Does he not further agree that since this has coincided with a more difficult mortgage situation it points to the desirability of the building societies equalising their lending over a lengthy period if necessary through a voluntary stabilisation fund?
§ Mr. ChannonMy hon. Friend is quite right. He will have noted in the April White Paper our intention to seek voluntary arrangements with building societies.
§ Mr. CroslandThe hon. Gentleman says that his hon. Friend the Member for Billericay (Mr. McCrindle) is quite right and that this is due to the natural inflow of funds. Is it not because, far from the rate of increase in house prices slowing down, it was 10 per cent. in the first quarter of this year which was a substantially faster rise than in the last quarter of last year? What does he think about that? Does he think that the Government are totally helpless in the face of it?
§ Mr. ChannonNo, I do not think that at all. The right hon. Gentleman quite fairly draws attention to the first quarter, but I must point out that this is a comlicated set of figures relating partly to mortgage approvals and partly to mortgage completions for the period concerned. The subjective evidence that I receive is that the rate of increase is very much less than the figures—
§ Mr. Thomas CoxNot in London.
Mr. ChannenThe hon. Member says that that is not the case in London, but the situation varies very much in different parts of London.