House Building (Hansard, 14 January 1976)

§ 1. Mr. Skinner
asked the Secretary of State for the Environment what further proposals he has for increasing house building in the public sector.

§ The Minister for Housing and Construction (Mr. Reginald Freeson)
Out measures have produced a major expansion in house building in the public sector. In the first 11 months of 1975, there were 160,000 starts. This is markedly more than for the whole of 1974, and 50 per cent. more than for 1973. New approvals, too, are also increasing. For the first 11 months of 1975, they were 12 per cent. up on the same period of 1974 and 51 per cent. up on 1973. I expect these results to continue.

§ Mr. Skinner
It reads like an end-of-term report—"Slight reasonable improvement, but Tony needs to do much better." Does my hon. Friend appreciate that one of the factors inhibiting local authorities from being able to build even more houses is a factor that I have mentioned before—namely, the 60-year financing of local authority housing and the urgent need to reduce that span even 360 if only for 40 years? Moreover, does my hon. Friend appreciate that in order to give an incentive to local authorities to build, at the same time as reducing the span to, say, 40 years, for each additional house built we should write off a house built in, for example, the 1919–20 period? That will provide an added incentive and will not cost a great deal more money.

§ Mr. Freeson
My own view is that the most important political incentive to get houses built by local authorities with Government backing is the political will, as well as the legislative framework and financial resources with which to do it. That is what will decide at national and local levels whether we continue to expand local authority house building and, indeed, housing association house building, as has been the case for the past two years. Certainly I am prepared to consider the terms of financial local authority house building in the context of the housing finance review. However, although I sympathise with the idea of looking at this aspect afresh, I do not accept that it is a main or significant factor.

§ Mr. Michael Morris
Far from looking for an expansion in the public sector, is it not about time that the Government considered what is happening in the public sector? Public housing costs are increasing by about 30 per cent. There are now examples of rent levels covering only 12 per cent. of costs and of flats being built at a cost of £73,000.

§ Mr. Speaker
Order. This is not a debate.

§ Mr. Morris
Is it not time that there was a review of what exactly is going on in that area?

§ Mr. Freeson
The hon. Gentleman has not been paying attention. A major and fundamental housing finance review is now being conducted by the Department. That is not a reason—I put it no higher—for advocating a reduction in local authority house building when we need houses for people to live in.