Housing Market

Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 9 December 2014.

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Photo of Mark Lazarowicz Mark Lazarowicz Labour, Edinburgh North and Leith 11:30, 9 December 2014

What recent assessment he has made of the effect of the housing market on the economy.

Photo of Andrea Leadsom Andrea Leadsom The Economic Secretary to the Treasury

The Government are committed to making the aspiration of home ownership a reality for as many households as possible. The Government’s Help to Buy scheme and last week’s stamp duty reforms will continue to support housing market activity and new housing supply is already responding with housing starts growing by 16% in the year to 2014 in quarter three.

Photo of Mark Lazarowicz Mark Lazarowicz Labour, Edinburgh North and Leith

The recent measures are no doubt welcome, but would the Minister care to confirm that annual house completions have been lower in every year under her Government than in every year of the last Labour Government?

Photo of Andrea Leadsom Andrea Leadsom The Economic Secretary to the Treasury

The point is that we believe in the aspiration to buy your own home. We have seen house prices recover but they are still in real terms lower than they were at the peak under the last Government. This Government have delivered housing starts at their highest since 2007 and our Help to Buy scheme, which has helped 77,000 people to get on to the property ladder, is a very important measure.

Photo of David Rutley David Rutley Conservative, Macclesfield

I am pleased that the Government’s stamp duty reforms are already helping more first-time buyers in Macclesfield. What assessment has my hon. Friend made of the effect the stamp duty reform plus the Help to Buy scheme will have on helping more people to get established on the housing ladder?

Photo of Andrea Leadsom Andrea Leadsom The Economic Secretary to the Treasury

My hon. Friend is quite right. Our stamp duty changes have meant that 98% of the people who pay stamp duty will receive a cut, which will enable more people to get on to the housing ladder. Our Help to Buy scheme will also encourage more aspirational young people to buy their first home.