§ 20. Mr. McCrindleasked the Secretary of State for the Environment what estimate he has made of the number of people who will purchase a property on mortgage for the first time in 1975; and if he will make a statement on the Government's measures he plans to assist them.
§ Mr. KaufmanNo official estimate is made of the future number of first-time purchasers, as this depends upon a wide range of variable factors. As regards the second part of the Question, I would refer the hon. Member to the reply given to him on 13th November 1974.—[Vol. 881, c. 393.]
§ Mr. McCrindleIn its election manifesto the Labour Party promised a national housing finance agency. In addition to saying what progress has been made in the creation of that body, will the hon. Gentleman tell us how it is planned to slot its activities into the activities of the building societies; whether the idea is that such an agency should assist with the deposit required to buy a house in the form of a grant rather than a loan; and whether it is intended that the agency should be authorised to advance money at below the market rate to assist first-time purchasers?
§ Mr. KaufmanTo answer the hon. Gentleman's supplementary question I should need to make yet another interesting speech in an Adjournment debate. We are at work on the plans to fulfil the pledge in our manifesto. We very much hope that we shall be able to reverse the disastrous slump which occurred while the Conservative Government were in office, during which loans to first-time purchasers fell from 405,000 to only 93,000 in the first half of this year.
§ Mr. Robin F. CookWill my hon. Friend bear in mind that many first-time buyers obtain their housing loans from local authorities and that the current local authority lending rate is not 9½ per cent. or 11 per cent., but 14 per cent. or 15 per cent.? Does he consider it just that people on the lowest incomes should pay the highest interest rate? Has he anything further to add to the statement of the Minister on 13th November, that vigorous discussions were being conducted on this matter?
§ Mr. KaufmanI have something further to add, and I shall be adding it if and when my hon. Friend's Question is reached.
§ Mr. ScottHave not the Government got their priorities completely wrong? Instead of producing proposals which have dried up the market in furnished accommodation and strangled house building by the threat of nationalising development land, would it not be better if the Government were to produce concrete proposals to help house buyers, and particularly first-time house buyers?
§ Mr. KaufmanIf I did not know the hon. Gentleman as a man of moderation and sensibility, his intervention would strike me as at minimum impertinent, considering that under the Conservative Party last year the mortgage interest rate rose three times, and that house prices rose by 113 per cent. while his party was in office.
§ Mr. McCrindleTo give the Minister the opportunity of telling the House what he has so signally failed to tell us this afternoon, I wish to tell the House that I beg leave to raise the matter on the Adjournment at the earliest possible moment.
§ Mr. Deputy SpeakerThere is a customary form of words to use when an hon. Member wishes to give notice of his intention to raise a matter on the Adjournment.