Home ownership must be encouraged, says Shapps

News Category: Industry News

Aspiration to home ownership will be encouraged, says housing minister Grant Shapps.

In his first speech as housing minister, he said that the age of aspiration was back, and he underlined the importance of first-time buyers to the market.

Speaking at the RICS headquarters in Westminster yesterday morning, he said it was not right to deny a new generation something his own generation had enjoyed – the chance of home ownership.

He added: “This new Government is not in the business of pouring cold water on people’s aspirations.”
 
The last Labour housing minister said it was "no bad thing" for home ownership levels to fall. But Shapps said it was human nature to aspire to owning the roof over one’s head. And he promised: “I will work every day to help people achieve their aspirations to own their home.
 
“Of course, I am not arguing that everyone should somehow aspire to home ownership. Renting a home can be a positive and flexible choice. And social housing provides a sense of security for millions of families.

“I am simply saying to those who aspire to own their own home: this Government will support you. You will not be ignored. The age of aspiration is back.”

He went on: “There are an estimated 1.4m households who aspire to own a home but are unable to do so because of house prices and mortgage availability.
 
“There are hundreds of thousands of people in rented accommodation, or living with parents, who yearn to be first-time buyers. It is now true that the average age of the first-time buyer is 37.

“That 37-year-old is not asking for a hand-out: they just want a chance. We need to give them that opportunity.”
 
Talking about the massive challenge to beat Britain’s financial crisis, Shapps said it was important to create a stable housing market.

He said: “We will need to work together across the housing market – builders and surveyors, lenders and brokers, regulators and agents – to ensure that the conditions which created the housing bubbles of the past are never repeated.

“But there are still difficult adjustments to be made and I know that market confidence remains fragile. There is a risk that the market may not respond to changing conditions quickly enough, leaving creditworthy borrowers still out in the cold.

“I see responsible lending and responsible borrowing as two sides of the same coin. Borrowers will need to demonstrate financial responsibility and show that they can sustain home ownership. In return, lenders will need to support creditworthy home owners.”

Turning to HIPs, he said: “Expensive and bureaucratic Home Information Packs increased the cost and hassle of selling homes. We have ripped up red tape that was strangling the housing market recovery.

“It is a move that has already started to have an impact – the number of homes coming to market immediately jumping by a third.”

He said the new Government would promote shared ownership schemes, and wanted to see more house building. It would give planning powers to local people.

“Rather than being told what to build and where, residents of villages, towns and cities will be able to develop their own vision for their place.

“We’ll introduce Local Housing Trusts, enabling communities to create new housing for local people.

“We understand that the transition to a more open, transparent and democratic planning system is not entirely anxiety-free for many involved.

“But we know that there is no future in this centrally planned system which has so dramatically failed, delivering fewer homes now than during any peacetime year since 1924.

“By unleashing the aspirations of communities as well as individuals to build homes where and when they are needed, we will bring about greater certainty. Certainty that will replace the conflict caused by imposing housing numbers from right here in Whitehall, and certainty that will give investors confidence to invest.”


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