Sir Peter, when you invited me to come here today I needed no urging to accept. But to make sure, Ian Gow sent me a note, in which he said: “NHBC is the flagship for the promotion of home ownership” . (Marginal notes by MT: So many practical wealth creators. Very various experiences of P.M.'s.)
You, Sir Peter, have been Captain of that flagship since 1978, and yours has been a distinguished command. We are all very sorry that you are leaving the bridge to be piped ashore. But you are leaving the ship in the best of hands, as command passes to your number one, Andrew Tait. [end p1]
Since Mr. Tait introduced the ten-year protection scheme, more than two and a half million houses have been built under the warranty of the NHBC. That is a magnificent achievement, and we share your pride in it.
We share, too, your determination to make Britain still better housed. We share your faith in the private sector, your pride in the job, your insistence on high standards, and your belief in individual incentives, which reward merit and success. And we do appreciate very much the important [end p2] part which small builders play in the construction industry.
What the NHBC wants
I am told, Sir Peter, that you would like me to say five things.
First, you would like me to say that lower interest rates are in prospect. Much as I should like to, I am not a prophet, and I cannot give you that assurance. But I can point out that interest rates have fallen substantially in recent months. Indeed, I can also point out that total [end p3] investment to some extent sensitive to interest rates, this year will be at an all-time high.
Secondly, you are concerned about stamp duty. Well, last year we cut it: raised the threshold, and halved the rate for those paying over £40,000.
Thirdly, you would like mortgage interest relief to continue. It will.
Fourthly, you would like more land for building and quicker planning decisions. I share your concern. [end p4] And the DOE know my views.
Finally, you are worried about VAT on new housing. Let me assure you that we have no plans to alter the present position, and we are resisting vigorously the Commission's attack on zero-rating.
Home Ownership
Spreading the ownership of property more widely is central to this Government's philosophy. It is central because where property is widely owned, freedom flourishes. [end p5]
In Wilfred Blunt 's words:
“Nor has the world a finer thing,
Though one should search it round,
Than thus to live, one's own sole king,
Upon one's own sole ground.”
Since we took office in 1979, 1.7 million more people have come to own their homes—1.7 million more sole kings upon their own sole ground. [end p6] That increase is one of our proudest achievements.
Right to Buy
The greatest single contribution has come from giving council and public sector tenants the right to buy. Most council tenants, especially the younger ones, long for the chance to own their own homes. Indeed, home ownership is so popular that even the Opposition are coming round to it.
We are proud of our right to buy scheme, and of the way our policies are increasing the role of the independent sector in housing. [end p7] —of course there will always be a part for the public sector to play, in meeting special needs and providing decent housing for those who—for one reason or another—will never be able to own their own homes. Of course there is an —important role too for partnerships between the public and the private sectors. The sort of partnership which I saw for myself at Minster Court in Liverpool—using private sector skills and a modest amount of public money to turn derelict blocks into attractive homes. [end p8]
But, for a large and increasing majority, the private sector alone can meet lifelong housing needs.
The Private Sector
The Housing Research Foundation has suggested that home ownership in England could approach 80%; by the end of the century, compared with about 63%; now. That is an exciting goal; and it will be achieved, provided that mortgages remain readily available, and developers continue to build the right houses at the right price. [end p9]
Mortgage Finance
Already we have seen major changes in the mortgage market. New lenders have entered the traditional preserve of the building societies, leading to competition for funds, and competition for customers.
We hope to see the building societies playing a wider role as home ownership expands, and in our Green Paper we put forward specific proposals for consultation: [end p10] —allowing societies to offer additional financial services —giving them the power to own and develop land for housing —allowing them to offer conveyancing and estate agency services.
The Right House at the Right Price
Your members, Sir Peter, have done us all a great service in expanding the range and improving the quality of new homes. [end p11] Tiny studio flats, starter homes, and family houses—builders have shown that they can build them all.
Even sheltered homes for the elderly, which used to be found only in the public sector, have now been built for private customers. This is doubly welcome, because it provides the housing people want, and relieves the burden on the taxpayer.
At the same time, expectations are rising. People not only want homes that are safe, comfortable and convenient. [end p12] They also want style and character, both in the buildings and their settings.
Long before the NHBC was even thought of, we were able to build beautiful small towns and villages and elegant squares and terraces. We had an instinctive flair for good design, around which communities were built.
In the post-war period, we seemed to lose some of this talent. But now we are regaining it. Builders are meeting the challenge of better design, both for looks and for living. [end p13]
Peroration
A house is most people's biggest asset. It is a large investment, and it needs protection. That is why the NHBC's job is so important, and why it must continue to respond to the pressure for further improvements.
But a house is more than this. It is a symbol of security, and a stake in the future. People who own houses do so not just for themselves, but for their children. [end p14] They do so as members of a responsible society—proud of the heritage derived from the past, glad to care for it, and eager to give the next generation a bit of capital to give them a start.
I believe in home ownership because I believe in individual responsibility, and I believe that by our actions we can shape the future. I congratulate you all on the work that you do. Your success is our success, and I wish you all the best in the years to come.