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Housing and the Credit Crunch

I draw attention to the interest declared in the Register of Members' Interests. I congratulate my hon. Friend the Member for Milton Keynes, South-West (Dr. Starkey) and her Committee on an admirably thorough, thoughtful and constructive report on a complex subject. I also congratulate my hon. Friend the Minister on his new appointment. He comes into an important post at a challenging time, and I wish him every success. There is no question but that the state of the housing market and the consequent challenges that it presents is hugely important for all of us. It is the biggest economic challenge that the country has faced for decades, and the downturn, as we all know, has impacted particularly sharply on the housing market. There are implications not just for people who aspire to own their home. Throughout the housing market, people's ability to secure affordable housing, whether to own or to rent, is challenged by the current economic circumstances. Against that background, the Government's response to the challenge has been energetic, comprehensive and imaginative. I contrast that with the experience during the recession of the early 1990s when the then Government took a long time to recognise the scale of the problem affecting the housing market. Their responses, when they came, were fragmented, and some were not very effective.