[Dated 24 June 2011 but not received until late August 2011]
Dear XXXX,
Thank you for your email of 26 May to Grant Shapps, the Minister for Housing and Local Government, regarding the housing policy. I have been asked to reply on his behalf.
In this as well as your previous correspondence with the Minister you have made a number of valid observations about conditions that affect stability of the housing market. The Government recognises that this is a market and as such is influenced by a variety of factors.
The Government can not regulate all elements of a complex market system but it can influence some of its activity. From the past decade we have learnt that the centrally imposed targets for housing supply do not work. Equally, whilst recognising the benefits that improved affordability can bring to first time buyers accessing the market, the Government has not set a target for affordability.
However, the Government recognises that the failure of the housing supply to keep up with growing demand is one of the factors that lead to the rapid house price inflation seen in the last decade. This is why the Government is introducing a wide raft of reforms ranging from local incentives for housing growth, reducing burden of regulation on the house builders and increasing the availability of land.
These reforms, alongside sensible lending practices that balance the access to mortgage market for creditworthy borrowers and yet prevent repossessions, will help achieve an active, stable and sustainable housing market that responds to demand.
I would like to thank you once again for sharing your views with us.
Yours sincerely,
Alexander Moskalëv
Policy Advisor
