On 7th February 2017, Lord Bourne gave a statement to the House on the publication of the Government’s new White Paper on housing. The Bishop of Chester, Rt Revd Peter Forster, asked a question about falling house prices.
The Lord Bishop of Chester My Lords, I want to ask about the politics of all this. I speak as a fool in relation to that, but let us take the hypothesis that this policy is a great success, that we have lots more houses and that the price of houses starts to fall. Indeed, let us imagine that land prices start to fall in the way that the noble Lord, Lord Campbell-Savours, rightly pointed out. All the people who have bought houses in the past 20 years will find that those houses are worth less than they used to be. It seems to me that this is tinkering with a major problem. Do the Government seriously wish to get the average value of a house back down to 3.5 times average earnings? If so, what are the consequences going to be?