Bell calls for Government action on North Somerset house prices

4.45.10pm BST (GMT +0100) Thu 20th May 2004

Councillor Mike Bell, Woodspring constituency Liberal Democrat Parliamentary Spokesman, is calling on the Government to do more to help first-time house buyers in North Somerset. His comments follow the release of figures showing that house prices in the South West have doubled in the past five years and that the region has seen some of the greatest levels of growth in the country.

Mike Bell said: "In the last five years the cost of a house in the South West has more than doubled, while in the past decade only London has seen a steeper rise in prices.

"It has become impossible for thousands of local people on normal North Somerset wages to afford a first house. This is now a serious social concern, and the Government should act to address the problem.

"At present stamp duty is charged on all property purchases over £60,000, and the Government should consider how first-time buyers could be exempted from this tax, or at least pay a lower level.

"There should also be greater support for imaginative new schemes which allow first-time buyers to own part of the value of a property, with the remainder being owned by a housing association or similar body.

"Ultimately, whatever measures are taken, property inflation is mainly being driven by a shortage of supply in the housing market.

"That means more buildings will need to be converted into accommodation and new houses will have to be built. These should, wherever possible, be located on brownfield sites, where they will also contribute to economic regeneration.

"In the past decade shop prices have risen by 28 per cent, while the cost of an average property in the South West has risen by 204 per cent. It is time for the Government to develop a proper strategy to help first-time buyers, and others on typical local wages, afford a suitable house."