Philip Hollobone
Main Page: Philip Hollobone (Conservative - Kettering)Department Debates - View all Philip Hollobone's debates with the HM Treasury
(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Danny Alexander
The hon. Lady comments on affordable social housing, but I note that during Labour’s 13 years in office the amount of social housing fell by 421,000. This Government’s policies will increase the amount of social housing by 200,000—a record on which she should compliment us. On the mortgage indemnity guarantee, offering support to many households who cannot afford the large deposits now required is a thoroughly good thing, and by involving the Financial Policy Committee of the Bank of England in a review after three years we also have a guarantee of financial stability.
Mr Philip Hollobone (Kettering) (Con)
The Government’s fiscal and other policies have cut the deficit by one third, helping to keep interest rates low. What would happen to the housing market and domestic mortgage costs were interest rates to rise, even by just 1%?
Danny Alexander
My hon. Friend makes an important point, and he will know that if mortgage rates increased by 1% it would add more than £10 billion a year to the costs for British households—not a consequence any of us on the Government Benches would welcome.