§ 7. Dr. Lynne JonesTo ask the Chancellor of the Exchequer if he will make a statement on house prices.
§ The Minister of State, Treasury (Mr. Anthony Nelson)The Department of the Environment house price index shows that house prices increased by 2 per cent. in the year to the fourth quarter of 1994.
§ Dr. JonesHow does the Minister reconcile the need for price stability in the housing market with his Government's policies on assistance to house buyers, especially the million trapped by negative equity?
§ Mr. NelsonThe hon. Lady should draw some encouragement from the fact that the number of people with negative equity has fallen by nearly a half and, indeed, the value of that negative equity has fallen by nearly two thirds. I immediately acknowledge, however, that there is a real problem and a concern, particularly for those who want to move and suffer from negative equity. In the Government's view, the best prospects for a gradual revival in house prices will be served by continued economic growth and increased prosperity, rather than a short-term inflationary boom.