HC Deb 24 July 1974 vol 877 cc1584-5
12. Mr. R. C. Mitchell

asked the Secretary of State for the Environment whether he will make a statement on trends in house prices with special reference to the South of England.

Mr. Kaufman

The latest national figures based on general building society lending, as well as the latest figures for the South-East Region, excluding greater London, suggest that house prices are now stabilising.

Mr. Mitchell

Is my hon. Friend aware that it is welcome news that house prices are stabilising? Is not that in favourable contrast to the rapid increase in house prices which occurred under the previous administration? Will my hon. Friend say when we are to get information about the Government's policy on land, which particularly in the South of England is the key to the whole picture?

Mr. Kaufman

There are later Questions on that subject to which answers will be given which will I am sure be to the vast satisfaction of all hon. Members. I am sure the House would not wish the situation to persist in which, for example, in the South-East Region, which concerns my hon. Friend, house prices rose last year by 52 per cent.

Mr. Hill

When will the Minister stop tinkering with the building society system and make a constructive effort to bring down the rate of borrowing in the mortgage sector? It is no good saying that prices are stabilising if no mortgage facilities are available.

Mr. Kaufman

The hon. Gentleman must know that since the Government's welcome initiative, decried by the Opposition but enormously successful, mortgage funds have been coming forward very well and, unlike the situation in which the Conservative Government's £15 million bribe had no effect whatever on the building societies, our prudent and sensible loan facilities have been accepted by them and they have held down interest rates.

Mr. Frank Allaun

Is my hon. Friend aware that according to building society statistics one-third of the cost of a new house now goes to pay for the land? In London that means on average £4,300 per house. Does not this strengthen immensely the case for public acquisition of land?

Mr. Kaufman

The case was previously incontrovertible. It is now unanswerable.

Mrs. Thatcher

In spite of what he said about mortgage interest rates, is the Minister aware that under his Government mortgage interest rates have been at 11 per cent. for longer than under any other Government?

Mr. Kaufman

That is one way of putting it. Another way of putting it is that mortgage interest rates have not risen under the present Government whereas under the previous Government they rose 2½ per cent.