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Housing Market

Volume 490: debated on Monday 30 March 2009

To ask the Secretary of State for Communities and Local Government how much her Department spent against its Objective 4 to deliver a better balance between housing supply and demand in each of the last five years; and what each figure represents in 2008-09 prices. (265076)

£11,259 billion was spent between 2003-04 and 2007-08 by the Department. The figures for each year in cash terms and in 2008-9 prices are shown in the following table.

£ billion

Actuals

2009-09 prices

2003-04

1.937

2.218

2004-05

2.087

2.326

2005-06

2.098

2.291

2006-07

2.452

2.608

2007-08

2.685

2.772

Total

11.259

12.215

Expenditure has been converted to 2008-09 prices using the GDP deflator as published by HM Treasury. This deflator is calculated from Office for National Statistics data for seasonally adjusted current and constant price GDP for years up to 2007-08. 2008-09 is derived from HM Treasury forecasts for GDP deflator increases at the Pre-Budget Report 2008.

To ask the Secretary of State for Communities and Local Government what research has been commissioned by her Department on likely changes in housing (a) need and (b) demand arising during the recession; and if she will make a statement. (265096)

The Department has commissioned Heriot-Watt university to produce a new analytical model that will improve our capacity to estimate the number and type of households with some form of housing related need. We expect the housing need analytical model to be in use within Communities and Local Government by autumn 2009.

The CLG affordability model was developed in response to the Barker Review of Housing Supply in 2004. This model has been updated to reflect the tighter credit conditions we are seeing. We are also updating it currently to include the latest CLG households projections published in March 2009.

Both of these analytical models are designed primarily to assess the impact of important long-term drivers of need and demand, such as demographic change. They will also be valuable tools in understanding the near term impact of the economic downturn on housing need and demand.