§ 9. Mr. James Hamiltonasked the Secretary of State for Scotland what were the average prices of new and old houses in Scotland in June 1970; and what are the figures at the latest available date.
§ Mr. YoungerThe best information available to me indicates that the average price of a new house mortgaged by a building society in Scotland in the second half of 1970 was £5,504 and of an existing house £4,962. The comparable figures for the second half of 1972 are £6,832 and £6,477, respectively.
§ Mr. HamiltonBearing in mind that shocking reply, does the hon. Gentleman agree that it is becoming increasingly difficult for young couples to obtain the down payment and that because of low wages and unemployment they will not get mortgages in Scotland? Does he further agree that because of the Government's rent policy local authorities do not have houses to let, young couples are becoming homeless and the position will get worse? What do the Government intend to do for the homeless?
§ Mr. YoungerI have always been most concerned about houses being available for young couples to buy, but I cannot accept all that the hon. Gentleman said. Whereas the increase in house 1235 prices generally in England and Wales over the same period has been about 62 per cent., in Scotland it has been about 29 per cent. That is slightly less than the increase in male average earnings over the same period. It does not suggest that the matter is becoming relatively more difficult. If the hon. Gentleman has any suggestions to make on this topic, I shall consider them carefully.
§ Mr. Bruce-GardyneDoes my hon. Friend agree that the rise in house prices in Scotland, as in England, is a symptom and not a cause of inflation? May I ask him not to allow himself to be diverted by Opposition and other pressure from tackling the causes and not the symptoms of inflation?
§ Mr. YoungerI assure my hon. Friend that I will not allow myself to be diverted by any pressure from the Opposition. I am sure that that statement will be welcome to my hon. Friend.
§ Mr. SillarsIs it not ludicrous to talk about percentage increases and to relate house percentage increases to wage percentage increases? Will the hon. Gentleman do a quick calculation and say what is 29 per cent. of £6,000 and what is 29 per cent. of £30 per week?
§ Mr. YoungerSurely the correct calculation relates to the effect on a person's weekly budget of having to pay mortgage for a house. The point I was making was that if the rise in house prices has no more than kept pace with the inflation that has taken place over the period, a family with an inflationary wage increase of approximately that amount should be relatively in much the same position.
§ Mr. RossWill the hon. Gentleman say from his own personal experience why in his constituency of Ayr the increase in the price of old and new houses is so much higher than the national average?
§ Mr. YoungerIf that is so, it may be because of the fact that, wisely, a great number of people wish to live in my constituency. I am not the least surprised about that. The right hon. Gentleman may know that on Monday I handed over the keys of a brand new house to somebody near his own constituency and the house price was less than £5,000.
§ Mr. HamiltonIn view of the unsatisfactory nature of the reply, I give notice that I shall seek to raise this matter on the Adjournment at the earliest possible moment.