To ask Her Majesty’s Government how they will help home owners and people who need a home in the current economic situation.

My Lords, we recognise that the housing market faces significant challenges. We continue to take action both to support home owners and first-time buyers and by doing all we can to keep the housebuilding programme on track.

My Lords, I thank my noble friend for that positive Answer. Does she agree that one of the best routes to social mobility is decent, well designed housing for all who need it? What can the Government do to ensure that all housing schemes underwritten or facilitated by statutory authorities can meet the highest housing need without cutting corners on quality, both in the design of housing and of neighbourhoods, particularly in view of current information that some housebuilders are orchestrating a move to renege on quality standards?

My Lords, even though we face unique challenges in our housebuilding programme, it would be a huge mistake if we were to send any signal that we are any less serious about quality. In the past year, not least thanks to the efforts of my noble friend, we have passed the Housing and Regeneration Act and the Planning Act, which will ensure that all delivery bodies, including the Homes and Communities Agency, must aim to deliver well designed homes and neighbourhoods. We are taking that work forward with the Homes and Communities Agency and our partner, CABE.

My Lords, in relation to the plight of home owners in today’s economic situation—I declare an interest as a member of the council of the Ombudsman for Estate Agents—will the Minister comment on the Government’s reaction to the report from the Office of Fair Trading on the practice of sale and rent back, whereby home owners in difficulties sell their property to a company which then lets it back to them? Unfortunately, the purchase of those properties is often at a knock-down price and the occupiers discover that they have very little security of tenure. This is a loophole that the OFT suggests needs the regulation of the Financial Services Authority. Are the Government able to comment on the OFT’s report on this?

My Lords, I think the whole House would agree that it is outrageous at this time for anyone to seek to exploit the misery of people who are in very difficult circumstances. I am glad to say that we are having conversations with the FSA at the moment about the prospects for regulation.

My Lords, I rent out property. There are now more than 1 million families struggling with their mortgages, more than one and a quarter million families trapped in negative equity and one and three quarter million on the homeless waiting list. The Government say they are doing all they can on repossessions, but the reality is that repossessions have doubled, led, incidentally, by the government-owned bank, Northern Rock. Now, to cap it all, they propose to grant draconian new powers to bailiffs. Is it not the case that the Government say they are helping families and home owners but the reality is nothing of the sort? I half expect the Minister to say, “Don’t worry. It’s the birth pangs of the new housing market”.

My Lords, I think that is an unfortunate phrase. We are doing all we can and giving real help. We have prioritised people who are most vulnerable though our mortgage rescue scheme, which we are working up with lenders, and £400 million is going into it to help people who might become homeless because they cannot make their mortgage payments. We are prioritising people who are at risk of losing their jobs. Through a lender-led scheme—the Homeowner Mortgage Support Scheme—we are working with major lenders to help many home owners. We do not want to see a single repossession because repossession and homelessness are more expensive than anything we can do. We are prioritising first-time buyers and have brought forward a new scheme with lenders, New Build HomeBuy Direct. We are putting in a 30 per cent stake, which we share with developers. We have 130 developers involved at a cost of £400 million. The total package announced in the Pre-Budget Report was £750 million, not only to support home owners but to support the whole of the construction industry.

My Lords, what are the Government doing to ensure that finance is available to housing associations? Housing associations are as affected by the reductions in lending as other organisations at the very time when it would make sense to increase construction.

My Lords, I could not agree more. We are bringing forward £550 million for affordable homes, which will give us 7,500 homes 18 months earlier than otherwise. Much of that money will go to enable RSLs to buy up unsold developers' stock and to expand their grant-making capacity.

My Lords, does my noble friend accept that our policy on homeless families impacts greatly on those who are waiting on the list? Is she aware that about 25,000 families are on the waiting list in east London? What does her department intend to do about the new housing to be built on the Olympic site to address the need for family housing?

My Lords, the Olympic investment is extremely timely not only in the jobs that it will create but the housing that it will build for east London. I have mentioned the £550 million for social homes. We are also removing barriers to council house building, changing the revenue and capital grants and inviting councils to bid for capital subsidy. We are consulting on the proposed changes. We are looking for the most pragmatic, effective ways to build, buy and sell more houses across the board with all our partners.