Orders of the Day — Housing Bill

Part of the debate – in the House of Commons at 7:35 pm on 15 January 1980.

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Photo of Mr Michael Shersby Mr Michael Shersby , Hillingdon Uxbridge 7:35, 15 January 1980

Prices vary over the country. Hon. Members who have had the opportunity to read the Nationwide survey will be aware of the prices within their areas. I give the figure in my constituency, in which London airport is situated. In the fourth quarter of 1979, house prices increased by an average of 29 per cent. There is little difference between new and secondhand properties. Those prices are now stabilising. In Greater London, the price of an older semi-detached house is £32,320. That is the price in my constituency for those types of houses, of which there are a large number.

How, then, are young couples with average industrial earnings to be able to buy a house at that price? The only answer is by means of shared purchase, where as little as 30 per cent. of the equity can be purchased and the remainder rented with an option to buy at a later date. A mortgage of about £10,000 is a feasible proposition for many young couples, and even the not so young, whom I see at my weekly constituency advice bureau. It is not a figure which is by any means out of court when both partners are working, and sometimes when they are not. I pay tribute to my local authority for the vigour with which it has forged ahead with this scheme and to other councils which have done likewise.

As with all good things, there are one or two snags. First, there is not enough property available to local authorities to meet the demand. I hope that in his reply my hon. Friend the Minister will say something about encouraging local authorities to provide more houses for sale.

I welcome the Bill as an important measure which will do much to spread home ownership, which is the greatest boon to men and women in the country.