§ The Government's commitment to home ownership remains as strong as ever. Today there are 16 million homes in the United Kingdom occupied by their owners—40 per cent. more than when we came to power in 1979. All surveys show that the vast majority of people still want to own their own homes.
§ We therefore have a target in our housing White Paper of a further 1.5 million home owners over the next 10 years. I reaffirm that mortgage interest relief will remain unchanged for the lifetime of this Parliament.
§ We have already introduced measures for mortgage lenders to make it easier for people with negative equity to move home, and the Finance Bill will pave the way for housing investment trusts, which will encourage investment in private rented housing.
§ I have considered very carefully the case urged upon me for special measures to revive the housing market. Many housing experts, sadly and reluctantly, are forced to the same conclusion as I am—that none of the affordable proposals would actually make any difference.
§ The problem at the moment is not the cost of house purchase to the purchaser. There have never been such bargains on the market. An average mortgage costs only around £180 per month, far less than renting an equivalent property, and houses are more affordable than they have been for years.
1067§ I remain convinced that what the housing market needs above all is steady growth in the economy and low inflation. That is what this Budget delivers. This Budget will reinforce my ability to keep interest rates and mortgage costs down. That matters most of all to the housing market. All the major lenders expect prices to start to rise next year, and as confidence grows I expect the market to start to move soon.