3 Conclusion
34. This short report focuses on issues that, in
February of this year, we committed ourselves to revisiting.
Since our follow-up evidence session, there has been a major Ministerial
reshuffle, with the Rt Hon John Healey MP becoming the fourth
Housing Minister in two years. Although we have no reason to
believe that Mr Healey will not be a very effective Minister for
Housing, the appointment of so many housing ministers in such
a short time cannot be beneficial to the advancement of a consistent
and effective housing policy. While
we recognise the need for changes to Ministerial posts, it is
vital that CLG has continuity in its housing policy: regular changes
in the responsible Minister do not further that aim.
35. In our previous report, we quoted the Government's
ambition for "everyone to have access to a decent home at
a price they can afford, in a place where they want to live."[49]
The Budget has gone some way towards making that ambition more
achievable. However, the alarming drop-off in house building
figures and the potential loss of capacity in the house building
sector continue to put it at risk. In the absence of further public
funding, the flow of mortgage finance from lenders will be key.
All of our external witnesses agreed that the Asset-backed
Securities Guarantee Scheme is not working. We urge CLG to keep
up the pressure on the Treasury to ensure that mortgage funding
flows more easily and to a wider range of mortgage providers,
including those who fund sub-prime mortgages.
36. The oral evidence illustrated that the current
economic circumstances are still having a profound effect on the
Government's housing policy, on the construction industry, and
on people's ability to pay the rent or mortgage payments—or
to secure a tenancy or mortgage in the first place. We urge the
Government to consider the implications of the economic circumstances
for its medium to long-term housing policy, and to ensure that
it is continuing to take action which will further its aim of
a decent home for all.
49 CLG (July 2007), Housing Green Paper, Homes for
the future; more affordable, more sustainable, p 64. Back
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