I rise to speak to new clause 7. There has been a failure of successive Governments to tackle the issues with our housing stock. Since the 1970s we have, on average, built 160,000 new homes a year in England, and the consensus is that we need to build between 225,000 and 275,000 homes a year to keep up with population growth, to keep up with an ageing population and to tackle years of under-supply. That is why I am pleased the Government are taking steps to address the situation through accelerated house building, resulting in an increase in supply of 217,000 houses in the past year.
Increased demand and an historic lack of supply have inevitably pushed prices up. On average, house prices have risen by 7% a year since 1980, but the rise is not uniform. Areas such as the south-east have suffered
more than others, with a 369% increase in prices since 2005. I see that in my own family, with many of my young cousins in Knowsley buying a home in their 20s on average salaries, as their parents did before them, but that is not the case in the south-east and other parts of the country.
Large price hikes obviously affect young people more, as they are typically on lower incomes and struggle to raise the capital needed to save for a deposit. When I bought my first home in the mid-1990s, around 65% of my friends were doing the same, and we just earned average incomes. Now, less than 27% of 25 to 34-year-olds are home owners, and I would be willing to bet that not many of them are in Chichester, where the average house price is more than £365,000 and the average salary is just £25,000.
The point was highlighted to me by a young couple living in my constituency, whose high rental costs mean they are unable to make any substantial savings towards a deposit. They are grateful for the schemes introduced by the Government to help them save for a deposit. Changes to stamp duty will also help first-time buyers such as my constituents to reduce the savings needed to cover the cost of purchasing a home. They will no longer pay stamp duty on properties up to the threshold of £300,000, and only 5% of the cost over £300,000 on properties up to £500,000, so 80% of first-time buyers should pay no stamp duty at all. This policy removes one of the barriers to the housing market, and it will help to give people the opportunity to reach a dream that many of us achieved in our 20s and 30s.