Oral question asked in the House of Lords, by Lord Best (Crossbench). It was answered on Thursday, 14 May 2009.

Housing: Property Purchase

Question: My Lords, does the Minister agree that, although these HomeBuy initiatives are very useful as far as they go, in the great scheme of things they will help only a small number of people. The underlying problem is the acute shortage of homes compared with the number of new households formed each year. Does she accept the conclusion this month of the independent National Housing and Planning Advice Unit that, unless we substantially increase the supply of new homes to rent as well as to buy, after the recession we will face much higher house prices and much more acute shortages than we have had so far?

Answer: Yes, my Lords, I certainly accept that, which is why we do not renege on our ambitious target of 240,000 homes a year. We know that, no matter how difficult the current housing situation is, the demography and the demand will not change. We need to make available as much help and incentive as possible for the housebuilding industry in particular. As the noble Lord will know, we provided £200 million towards bringing forward unsold stock for social rented homes and, in the Budget, £400 million of kick-start for the stalled construction industry. We have to use a variety of initiatives to maintain jobs and the supply of housing.

Secondary information