National Planning Policy Framework

Lord Tebbit Excerpts

Tuesday 6th March 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord for that question because we are indeed taking action. The review of developers’ contributions, which is open until 10 May, is very much looking at the issue. In addition, of course, the housing formula policy in relation to building authorities should build the price down in the areas of the greatest expense. This is very much about all parts of the housing issue, including developers, playing their part. That is why we have this review—it is about ensuring that developers contribute fairly in relation to the prices they are getting for land and the sales they make.

[Lord Tebbit (Con)]

My Lords, does my noble friend have any answer to the dilemma posed by the fact that any measure that might reduce the price of new houses and help first-time buyers would of itself run the risk of putting existing mortgage holders into negative equity?

[Lord Bourne of Aberystwyth]

My Lords, my noble friend makes a very good point, the answer to which is, realistically, that we are reversing a process. The price increase process will slow and will halt over time, but I do not seriously think that we can expect large falls. We can see a levelling off over time.