Oral question asked in the House of Commons, by David Curry (Conservative). It was answered on Tuesday, 1 July 2008 on behalf of the Department for Communities and Local Government.

Social Housing

Question: But is not the recession in the housing market bound to be bad news for people who cannot afford a home at market prices? About 50 per cent. of all affordable homes in Britain are by-products of homes built at market prices, and if the Government do not think a little bit more long term about how those markets might be decoupled so that the social and affordable sector does not depend entirely on the health of the market sector, the misery and misfortune of people who would normally be able to afford a home will inevitably be multiplied in families who cannot afford their home.

Answer: I welcome the right hon. Gentleman's genuine concern about the affordability of housing. That is why we have helped about 110,000 people on to the housing ladder through our various shared equity and shared ownership schemes. It is interesting to note that despite the current situation a third of transactions are being undertaken by first-time buyers, so there is already some movement in the market. However, just as in May, when I announced an expansion of £100 million in our Open Market HomeBuy package, which helps many people on to the affordable housing ladder, so I shall be making further announcements in the not-too-distant future about what more we can do to help people to have a home of their own. For the long term, I hope that the present crisis will help us to talk with lenders and house builders about different models for home ownership in the future.

Secondary information