No rapid rise in interest rates, says government

9 June 2010 | By Natalie Martin

In his first speech since becoming housing minister, Shapps insisted that the new coalition government would be “prepared to take the tough decisions needed” to tackle the Budget deficit and prevent rapid increases in interest rates - which he says would hurt both homeowners and those aspiring to enter the housing market.

Shapps says: “If we are really serious about supporting people’s aspirations for home ownership, the real prize is we must build more homes. 

’For the first time incentives will create direct benefits for local communities, bringing jobs, investment and more homes for local people.

“Rather than being told what to build and where, residents of villages, towns and cities will be able to develop their own vision for their place.

“We’ll introduce Local Housing Trusts, enabling communities to create new housing for local people.”

He says it is human nature to aspire to shelter and security - and for the many that means owning the roof over your own head. 

He adds: “And I don’t consider it my job as Housing Minister to hold those aspirations back.

“With a new government and despite the enormous financial difficulties the country faces, I want to state clearly today - the age of aspiration is back.”