What steps she is taking to create more affordable housing (a) to rent and (b) to buy.

We are supporting a 50 per cent. increase in social housing over the current three-year period, as well as supporting increased market housing and shared ownership housing. That is the best way to deliver more affordable homes for the future.

I thank my hon. Friend for her reply, but does she accept that there are many attractive neighbourhoods in England's towns and cities, such as Fenham in Newcastle, where house prices are rising far more rapidly than the incomes of local people and where more than 300 people apply for every single council-owned family house that comes up? Does she accept that rising house prices are not a sign that market failure has been overcome, but that new ones with great unfairnesses are being created?

My hon. Friend is right to say that the increase in house prices has put pressure on first-time buyers in particular and on others who would like to be able to afford their own home but instead feel that they need to join social housing waiting lists. That is why we need to build more social housing as part of the answer. We also believe that we need more shared ownership in order to help people buy a share of their own home even if they cannot afford the whole house price. It is also why we need to build more houses in the long term. We have to recognise that we have not built enough houses to meet rising demand for more than a generation. That is why it is so important to increase the level of house building and why it is so tragic that the Conservatives are still continuing to try to block the increased homes that we need.

The Minister will be aware of the increasing concern expressed by regeneration agencies and the chief executive of the Housing Corporation at the growing practice of the purchase of property not even to let but simply to hold as an investment without its being occupied. Does she believe that that should be left to the marketplace, and what is her response to those concerns?

The right hon. Gentleman makes an important point. There is a difference between buy-to-let and buy-to-leave. There is concern if large numbers of properties are being bought and then not rented out but held empty, particularly in areas where there is high demand for housing. He will know that we have given local authorities powers and responsibilities to do more to deal with empty homes that are left vacant for a long time. We think that authorities should use those powers.

It is interesting to read in today's paper that the Prime Minister-in-waiting intends to build more houses both to let and to buy. Before I throw my hat in the air on behalf of the defend council housing campaign, may I ask the Minister whether she is aware that merely putting money into the private sector increases prices, and that what is needed is more land put on the market and to stop builders hogging land that could otherwise be used for building? Also, does she yet understand that building more council houses where they are required will assist in the process of ensuring that people have somewhere to live where they can afford either to pay the rent or buy? Will she stop the flim-flam that is going on in housing and recognise that the market without subsidy is—

Order.

I certainly agree with my hon. Friend that more land should be available for housing. We have said that we believe—

Order. Perhaps I can suggest to the Minister that if she faces the Chair, everyone will hear what she is saying.

I want to make it clear so that you can hear me, Mr. Speaker, that we believe more land should be available for housing, which means making sure that the priority is brownfield land. It also means ensuring that more social housing is built and that there is more shared ownership. We have taken steps to make it easier for councils to be able to build homes and for housing associations to increase the level of homes that they build. It requires increased housing across the board. The South East England regional assembly, led by the Conservatives, however, is still arguing for cuts in the level of house building. That is not in the interest of first-time buyers or those in need of social housing.

The Minister will of course be aware that in September 2004 the Government announced the commissioning of a number of low-cost houses in my Constituency through the design for manufacture scheme. Some two and a half years on, we are still waiting for a brick to be laid. Will she confirm that these houses will be built and that they will still cost £60,000, which was the price announced to my constituents by the Deputy prime minister just before the last General Election?

The hon. Lady will know that a series of different sites were put forward as part of the design for manufacture programme, and they are progressing at different speeds. Investment is taking place and new homes are being built. We think it is right that those homes should be offered at a range of prices, including some that are close to £60,000, some that may be at a lower price, some that may be social housing and some that may be at a higher price. It is important that the new developments should have mixed communities, and I am sorry if the hon. Lady's party opposes that principle.

Does my hon. Friend recognise that many Labour Members are worried that with creeping increases in interest and mortgage rates and astonishing house prices—even in the northern counties, in places such as Bolton—if, despite her assurances, there is a downturn in the economy, there will not be enough affordable houses to catch those people who will be forced out of owner-occupation?

My hon. Friend will know that the Bank of England takes the issue of stability extremely seriously, and it is important that it should do so. We are also clear that we need more investment in affordable housing, and that is why we have said that that is a priority for the spending review, and why we are supporting increased investment in affordable housing at the moment.