Minister rejects MP’s call on 25,500 homes (From Worcester News)

Minister rejects MP’s call on 25,500 homes

8:10am Sunday 14th March 2010 in

By David Paine » @davidpaineWN #worcsnews

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A WORCESTERSHIRE MP’s calls for the Government to abandon plans to build up to 25,500 new homes across the south of the county have been rejected.

Mid-Worcestershire MP Peter Luff asked the Communities and Local Government Secretary John Denham to tear up the West Midlands regional spatial strategy and allow local communities to decide on housing numbers.

The Conservative party has publicly said it would scrap the strategy if it won the general election, giving more decision-making power back to local councils. Labour, however, said scrapping the strategy would result in housing needs not being met and would also throw the construction industry into disarray.

During question time in the House of Commons last week, Mr Luff said: “Given the consensus that exists in areas such as south Worcestershire about the need for more homes, and for more affordable homes in particular, may I urge the Secretary of State, even at this late stage, to tear up the West Midlands regional spatial strategy and to allow local communities to decide exactly how many houses they need and precisely where they should go?”

In response, Mr Denham said: “It is important that the combination of local, regional and national policy should be used to secure sufficient homes to meet the needs of families in this country in the future.

“We have rejected calls to scrap regional spatial strategies and planning targets and to leave everything to decision-making at local level because we know that the house-building industry would grind to a halt, that land would not be available, that growth would be slowed and that the needs of this country’s families would not be met.

“The house-building industry is terrified by the prospect of such a policy being brought into play.”

Speaking afterwards, Mr Luff said: “This Government just doesn’t trust people – it prefers to impose the views of remote bureaucrats in regional organisation and Whitehall departments.

“People will be horrified to see this confirmation of contempt for their views.”

Comments(8)

economist says...
10:25am Sun 14 Mar 10

Well both the Halifax and Nationwide house price indexes show that house prices are falling again. House prices in the UK, including in Worcester, crashed by -20% from Autumn 2007 till Spring 2009. Last year, 2009, saw house prices rise a bit (about 8%) due to Gordon Brown using taxpayers money (£300 billion of it!!) to inject directly into the property market via the Special Liquidity Scheme (SLS) & the Credit Guarantee Scheme (CGS) in order to prop up house prices in order to bribe the electorate into voting him back into power come the General Election. However, the SLS and CGS £300bn has run out and house prices are falling again. The Bank of England has said the SLS and CGS will not be renewed and in fact the Banks need to repay the £300bn by 2012 and 2014 respectively. So, expect house prices to keep falling for the next few years and more than likely by 30% or more before they bottom out.
All the indicators are pointing to big house price falls to come. Note the 50% collapse in mortgage approvals in January this year.
The £300bn of taxpayers money should never have been used to prop up house prices - the money should have been used for saving health and education services, etc. and for loans to small businesses.