§ The Question was as follows:
§ To ask Her Majesty's Government whether, seeing that in the South of England there are many newly built houses still unoccupied and many others partially completed on which work has ceased, and in view of the desperate need for more housing at prices ordinary people can afford, they will devise a scheme to induce developers to cut their losses now rather than wait for possible bankruptcy to do it for them.
§ THE PARLIAMENTARY UNDERSECRETARY OF STATE, DEPARTMENT OF THE ENVIRONMENT (BARONESS YOUNG)My Lords, this suggestion is an interesting one. The Government do not believe, however, that builders will not do all they can to sell their houses.
LORD HAWKEMy Lords, while thanking the noble Baroness for her Answer, may I ask whether Her Majesty's Government realise that in order for an ordinary person with an income of, say, £2,000 to £2,500 a year to have a chance of buying the cheapest new house in the South-East of England, about £3,000 must come off the price of that house—namely, the price the man has paid for the land?
§ BARONESS YOUNGMy Lords, I am aware of the house prices and the proportion of land price in them.
§ LORD GARNSWORTHYMy Lords, may I ask the Minister what encouragement the Government have given to local authorities to consider purchasing these houses at a reasonable figure, and making 364 them available to those people referred to by the noble Lord, Lord Hawke, who have a desperate housing need and who seem to have little opportunity of satisfying it under present conditions?
§ BARONESS YOUNGMy Lords, local authorities are free to make these negotiations if they wish to do so in the interests of their populations.
§ BARONESS BACONMy Lords, did I understand the original Question aright, in that the suggestion was that the Government should give help to builders and owners of houses in order that people can buy houses at a cheap rate? If so, would it not be better if such a subsidy went to the local authorities so that they could buy these houses cheaply and let them to those on waiting lists?
§ BARONESS YOUNGMy Lords, this is another further suggestion which does not strictly follow from the original Question that was asked.
LORD MAY BRAY-KINGMy Lords, would the noble Baroness tell us why the Government cannot apply Phase 3 and its principles to the cost of housing?
§ BARONESS YOUNGMy Lords, I really do think that is another question.
LORD HAWKEMy Lords, since Her Majesty's Government cannot produce a carrot to get the house on the market, will they wield what stick they have much more vigorously than they are doing at the moment in order that this very big cut made in the price of houses may eventuate, and that the developers, standing shivering on the brink, may be pushed firmly into cold water as quickly as possible?
§ BARONESS YOUNGMy Lords, the Government are keen that people should be able to buy their own houses, and are looking at any practical schemes to enable such people to do so.
§ LORD PARGITERMy Lords, is the noble Baroness aware that the cost of land forms a high proportion of the cost of housing, in many cases more than the cost of building the house. Can the Government look at this with a view to calling back some of that?
§ BARONESS YOUNGMy Lords, I have noted the noble Lord's point and will certainly look at it.