§ Mr. Hastingsasked the Secretary of State for the Environment what percenttage fall in private sector building starts he anticipates this year compared with 1973; what are the reasons for this fall; what will be the effect upon the brick industry; and what action the Government propose to take.
§ Mr. KaufmanI do not consider that it would be useful to forecast starts for 1974. I believe that the fall in private housing starts so far this year was mainly due to the threat of severe mortgage famine, which is now averted. The drop in demand for bricks has led producers to reduce output. Following the Budget and the Government's £500 million short-term loans scheme, building society receipts and new mortgage commitments have risen substantially since April. For the longer term the Government intend to pursue urgently studies on how best to ensure a stable and adequate flow of funds for house purchase, which should help to rescue the building industry from the plight into which it was plunged by448W the disastrous policies of the previous administration.