§ Mr. MilburnTo ask the Chancellor of the Exchequer what factors underlie his forecast in table 3.3 of the Red Book about growth in 1997 of gross domestic fixed capital formation in private dwellings and land. [8278]
§ Mr. Waldegrave[holding answer 9 December 1996]Housing investment is expected to respond to the recovery in the housing market. This recovery is now well established. In the third quarter of this year the number of mortgage loans approved by banks and building societies was up by 28 per cent. on a year earlier, and in the three months to October turnover—as measured by particulars delivered at the Land Registry—was up by 19 per cent. on a year earlier. House prices in November were more than 7 per cent. higher than a year earlier. Housing starts have picked up in recent months, and this should be reflected in rising housing investment in 1997.