Housing minister Grant Shapps wants an era of “house-price stability” and says the Government has levers to help foster a slowdown in price increases.
Shapps told the Observer he wants a new era of stability where prices rise below the rate of earnings to make property more affordable, especially to young people.
He says: “I think it is horrendous that a first-time buyer would need to be 36 on average if they do not have the support of mum and dad.
“The main thing everyone requires for their subsistence is a roof over their head and when that basic human need becomes too expensive for average citizens to afford, something is out of kilter.
“I think the answer is house-price stability. We had this crazy period from 1997 to 2007 when house prices almost tripled, which is fine if you have a house.”
He explained a “rational” market, where prices increased by 2 per cent as earnings increased by 4 per cent, would see a drop over time.
In a separate interview with BBC Radio 4’s The Today Programme on Monday, Shapps said it is “foolish” for a Government to think it can end boom and bust but said it did have certain “levers” to influence the market.
He says: “I think it would be desirable to have a stable housing market and there are things the Government can do. There are policy levers.”