§ 22. Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer if he will take steps to moderate the rise in house prices. [179144]
§ Ruth KellyIn Budget 2003, the Chancellor noted that a reduction in housing market volatility would enhance macro-economic stability. He asked Kate Barker to review housing supply in the UK, and David Miles to review the UK mortgage market.
At the time of Budget 2004, both reviews presented their final reports. The Government have welcomed their analysis and recommendations for action.
As recommended in the Barker Review, the Government are implementing a programme of change to the planning system and to the delivery of development, consulting with stakeholders as necessary.
The Government endorses David Miles' conclusion that urgent reform is desirable to make the UK mortgage market work better for consumers in a number of areas. The FSA has in train reforms in the mortgage market, which will move to statutory regulation on 31 October. The Chancellor has asked the FSA to consider and report on the further reforms proposed by David Miles.