HC Deb 17 July 1978 vol 954 cc16-7
11. Mr. Viggers

asked the Secretary of State for Prices and Consumer Protection if he is satisfied with the law protecting consumers so far as house prices are concerned.

Mr. John Fraser

Yes, Sir. Policy on housing and house prices is primarily the responsibility of my right hon. Friend the Secretary of State for the Environment. Though house prices are not subject to price control legislation, the Government and the Building Societies Association jointly monitor trends in the housing market. My right hon. Friend set out the nature of the current arrangements in reply to a Question by my hon. Friend the Member for Newham, South (Mr. Spearing) on 9th June.

Mr. Viggers

Does the Minister agree that the best protection for consumers, when it comes to house prices, is to make sure that the house building industry remains firmly in private hands?

Mr. Fraser

I do not know about that, because in the first four years of the Labour Government house prices rose by 30 per cent. whereas in the last four years of the last Conservative Government they rose by 100 per cent.

Mr. Bryan Davies

Is it not the case that a modest measure to increase consumer protection for house purchasers was wrecked by the narrow interests of a small group of Tory Members? Will not they be held to account for that outrageous action?

Mr. Fraser

I am sorry that my hon. Friend's Estate Agents Bill failed to complete its passage last Friday because of fiibustering by some Tory Members. It is certainly my intention to try to reintroduce the legislation at the earliest possible moment.

Mr. Boscawen

Is there not a serious flaw in consumer protection as it affects housing in that integral heating systems are often not included in the protection that is given to consumers? Will the Minister do something about this?

Mr. Fraser

The hon. Gentleman has written to me, as have members of the public, about this problem. I am examining it.

Mr. McCrindle

If the Minister is as complacent as he sounded in his reply to this Question, may I ask why it is that, since the Government asked the building societies to reduce mortgage lending, so as to have some effect on house prices house prices have continued to rise substantially?

Mr. Fraser

The figure is the other way round. Since the arrangements were introduced, there has been a moderation in the increase in prices. Perhaps I can add that the investigations under restrictive practices legislation have found that private enterprise does not always mean an absence of price fixing.