HC Deb 03 December 1975 vol 901 cc1681-3
21. Mr. Skinner

asked the Secretary of State for the Environment whether he is satisfied with current home-building figures; and if he will make a statement.

Mr. Freeson

Not yet, but the latest figures published last week show further progress in our efforts to get a recovery in new housebuilding. In the first 10 months of 1975 there were already 145,000 starts and 133,000 completions in the public sector, compared with 147,000 starts and 129,000 completions in the whole of 1974, and, similarly, private sector starts and completions were 124,000 and 122,000 compared with 105,000 and 140,000. The figures show 23 per cent. and 15 per cent. increases in starts and completions so far this year, compared with 1974.

Mr. Skinner

Does my hon. Friend agree that, welcome as they are, those figures are compared with a very poor base in the previous year and that we need to go much further if we are to get anywhere near the figures of the mid-1960s, when we completed about 1¼ million houses in three successive years? Does he also agree that we must have a fresh look at the way in which local authorities finance their housing, and consider whether it should continue on the 60-year basis, whether loans should be at the same level as for financing motorways, and so on, and whether the Department should consider even the possibility of writing off some of the capital debt of local authorities, as has been done for the National Coal Board, British Rail and, indeed, some private sector companies, recently?

Mr. Freeson

The financial points mentioned by my hon. Friend fall to be and are being considered as part of the general housing finance review on which the Department is still engaged. I certainly accept, as I indicated in my original reply, that the progress we have made is not yet satisfactory. However, it is considerable. Compared with 1973, in the public sector there is an increase of activity of between 40 per cent. and 50 per cent. and a considerable improvement on the mortgage famine and the collapse of house-building for owner-occupation which we inherited at the beginning of 1974.

Mr. Sainsbury

Does the Minister accept that the economic situation will inevitably limit the amount of new building which can be carried out? In these circumstances, is there not a great need to review the improvement programme and to consider ways of bringing vacant property into use? In that connection, will the hon. Gentleman give urgent consideration to reviewing the reasons why property stays unused and to finding means to bring that property into use for homes?

Mr. Freeson

On the last point, we are already ahead of the hon. Gentleman. We have been in detailed discussion with local authority associations for some time now on a number of ideas for making better use of housing stock and bringing empty property into use. The hon. Gentleman will no doubt have noticed the statement made by my right hon. Friend the Secretary of State, a week or so ago, indicating half a dozen major points of policy on this issue. Concerning new building, I see these other initiatives not as alternatives to the level of new building, but as additional to it.

Mr. Frank Allaun

Will the Minister remove the restrictions on the improvement of older houses, particularly the installation of baths, hot water and inside lavatories? This could be done quickly, without involving the delay necessary in planning new housing, and would also relieve growing unemployment in the building trade.

Mr. Freeson

Concerning public expenditure budgeting for improvement, and, indeed, municipalisation, which is often closely associated with it, I must ask my hon. Friend to await the results of the public expenditure review, which is always current at this time of the year. I regret that I cannot undertake, if that is what my hon. Friend is suggesting, that no ceiling will be imposed on the budgets. Regrettably, the economic situation has pushed us in this direction. There will be budgeting, and not a no ceiling situation.

Mr. Raison

Is the Minister aware that we welcome much of the change of heart shown by the Secretary of State in his speech at Eastbourne recently? When can we expect the review of the Rent Act to be completed? Shall we have legislation, as a result, this Session?

Mr. Freeson

I shall be in a better position to say when such a review will be completed when it has started. It will follow in the wake of the housing finance review, as stated by the Secretary of State a week or so ago. The hon. Gentleman knows that his remarks are inaccurate and misleading to the House.