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Written question asked by Lord Taylor of Warwick (Non-affiliated) on Tuesday, 12 December 2023, in the House of Lords. It was due for an answer on Thursday, 28 December 2023. It was answered by Baroness Vere of Norbiton (Conservative) on Thursday, 21 December 2023 on behalf of the Treasury.

Housing: Prices

Question

To ask His Majesty's Government, following reports that house prices rose for a second consecutive month in November, what steps they are taking to balance the impact of stabilising housing prices for consumers against challenges posed by the increased cost of living.

Answer

The most reliable measure of average house prices in the UK is published by the Office for National Statistics. The latest release is for September 2023, when the average house price in the UK was assessed to be £291,400. That leaves average UK house prices 25% higher than their average level in 2019, although 0.2% lower than their average level in September 2022.

The Government has taken steps to support households vulnerable to cost of living pressures. In response to the energy crisis, the government provided one of the largest support packages in Europe. Support to households to help with the high cost of living is worth £104 billion over 2022-23 to 2024-25, or £3,700 per household on average. The Government is raising Local Housing Allowance rates in Great Britain to the 30th percentile of local market rents in April 2024. 1.6 million households will be better off, gaining £800 on average in 2024-25.

The Autumn Statement also took steps to ensure that work pays and to enable people to keep more of what they earn. The announced National Insurance cut means the average worker on £35,400 will receive a tax cut in 2024-25 of over £450, which the Office for Budget Responsibility also assessed will increase employment and raise potential output. From 1 April 2024, the National Living Wage (NLW) will increase by 9.8% to £11.44, representing an increase of over £1,800 to the annual earnings of a full-time worker on the NLW.

Secondary information

Type
Written question
Reference
HL1122
Session
2023-24
Subjects
Housing Prices Cost of living
Link
View this Written question on www.parliament.uk