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Housing minister warns of letting down future generations

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Housing minister Grant Shapps says a period of house price “stability” is needed to ensure future generations of would-be house buyers are not priced out of the market.

Speaking at the Housing Market Intelligence conference, Shapps said future generations will be let down unless something is done to make housing more affordable and prices more stable.

He said: “With a house now liable to cost perhaps seven times someone’s earnings, it’s no surprise that the average unsupported first time buyer is 37 years old.

“This country is in danger of letting down the aspirations of yet another generation if homes do not become more affordable in the long term.”

He added: “So what is required now is a period of house price stability. House price booms keep people out of the market. And house price busts mean people’s homes are worth less than they paid for them.”

Shapps also said he would look to reduce the regulation house builders face to encourage more housing developments started.

He said: “Just as we are serious about cutting the deficit, we are serious about reducing regulations.

“Of course, building regulations will continue to set a national minimum requirement for all new homes to make sure they are safe and help us reach our climate change targets. But we have already launched a review of the Building Regulations to identify where we can ease the burden on industry.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. I have no idea what his version of stability is, if you look at all the cuts facing families, the regulatory arbitrage over mortgages and the planning system hatchet job by Pickles you have to wonder where this ‘stability’ is coming from and what form it is expected to take.

    I don’t think they want to be voted in again, do you?

  2. I can’t believe that the Government are talking about bringing about house price stability. I feel for the people who bought their houses and are now in negative equity, especially if they are losing their jobs or finding it difficult to repay their mortgages. But surely what the market needs right now is some house price ‘instability’ to bring the prices back to normal valuations. People can then start to think about trading up or buying first time again. It is this incessant desire to stabilise everything that brings about the problems in the first place. Let the market bring about the necessary corrections and then the market will start to move.

  3. He (Grant Shapps) said: “Just as we are serious about cutting the deficit, we are serious about reducing regulations.”

    Note the quote said “regulations,” not “building regulations.”

    On the basis that Government struggles so much with the English language that its definition of a cut includes a smaller increase than was previously proposed lets hope this comment also applies to the MMR proposals from the FSA!

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