Housing

Barry Gardiner Excerpts

Wednesday 8th January 2014 Commons Chamber

[Mr Pickles]

Well, as we leave behind the ghost of Stanley Baldwin bequeathed to us by the Labour Front Bench, the figures demonstrate that we are really starting to move. The hon. Gentleman should be rejoicing in the fact that our policies are working.

In the 2005 manifesto, the previous Labour Government pledged that there would be 1 million more home owners. In reality, home ownership fell by more than 250,000. Yet the aspiration of home ownership has returned. According to the Bank of England, mortgages to first-time buyers are at their highest level. Both the Council for Mortgage Lenders and the Halifax report the same. Thanks to the action taken to tackle the deficit, we have kept interest rates down. The number of repossessions is at its lowest level for five years and continues to fall. The Bank of England reports that the number of new mortgage arrears cases is at its lowest quarterly level since its records began.

[Barry Gardiner (Brent North) (Lab)]

Will the Secretary of State acknowledge that of the 20 local authorities with the worst repossession record for mortgages, 17 are in London? Although he may not wish to address the problems of London, they are substantial and need his attention.

[Mr Pickles]

I have looked most carefully at the figures. It is not a surprise that the number of repossessions is dropping, and that is something about which we should be pleased. Mortgage approvals are at their highest level for six years. The Mortgage Advice Bureau notes that the number of mortgage products available to house buyers has surpassed the 10,000 mark, and cites Government action as the cause.

We are taking action to help those with small deposits. Since April, under the Help to Buy equity loan scheme, there have been more than 20,000 reservations for new build homes, supporting house building and first-time buyers. Over 90% of the 1,200 house builders registered under the scheme are small to medium-sized developers.

The Help to Buy mortgage guarantee scheme has had a further 6,000 applications in the first month, helping hard-working families. The average house price guaranteed under the scheme is just under £160,000.