Housing: Market Stability

Lord Morris of Handsworth Excerpts

Monday 23rd May 2011 Lords Chamber

[Baroness Hanham]

My Lords, we welcome any proposals that will enable us to work with the industry to try to find a way around the barriers faced by the insurance scheme at the moment. We currently welcome private insurance solutions and recognise that there are enormous challenges for first-time buyers. We are already running the mortgage rescue scheme, as I am sure the noble Lord knows. Some £200 million has been put into that scheme already, and we have already helped 38,000 households with that money as well as with advice and support. So it is not as though the Government are not doing anything—we are making substantial efforts—and if the economy were to stabilise and settle down, much of this problem would go away.

[Lord Morris of Handsworth]

My Lords, I declare an interest as chair of the Midland Heart Housing Association. Are the Government not aware that a sustainable housing sector depends on its ability to borrow and on the willingness of the banks to lend? Can the Minister tell us what action Project Merlin can now take to stimulate the housing sector by assisting it in its borrowing needs?

[Baroness Hanham]

My Lords, this goes back a little to my answer to the previous question. The economy, which is the first priority of this Government, needs to be effectively stabilised. After that, we hope that the banks will feel able to bring themselves more into the market to help particularly first-time buyers with mortgages. However, the first line of defence will have to be making sure that the economy is right.