London: Housing Costs
Debate between Baroness Williams of Trafford and Lord McFall of Alcluith
Baroness Williams of Trafford
My Lords, it is very difficult to tell these things until the policy is under way. But the average starter home in London is estimated to be about £318,000; in England, excluding London, it is £145,000. So a joint income of significantly less than that outside London would make a starter home much more affordable. But of course there are things such as the Help to Buy ISA, which will help people save up for their deposit. I am sure that as this policy develops and we get the figures in, I will be able to inform the noble Lord.
Lord McFall of Alcluith (Lab)
My Lords, as of December 2015 the Mortgage Advice Bureau stated that the average down payment for a London home is £179,248. How can any young couple, never mind those on the lower living wage, afford such a price?
Baroness Williams of Trafford
My Lords, products such as the Help to Buy ISA and the equity loan that the Government are proposing to raise from 20% to 40% in London should help first-time buyers. But I appreciate that house prices in London are not cheap.
City Regions: Pension Funds
Debate between Baroness Williams of Trafford and Lord McFall of Alcluith
Lord McFall of Alcluith (Lab)
My Lords, the big legal changes to pension death benefits which were introduced by the Chancellor and took place last April have had a perverse effect, in that it is much more tax efficient if someone dies under the age of 75 than just over the age of 75. The amount is tax-free if someone is under 75, but half the pension savings are lost if they are over 75. That is the result of rushed and thoughtless action by the Chancellor. Therefore, can we have an assurance that before he abolishes the tax-free lump sum, as mentioned in this week’s Sunday Times, he will think slowly rather than fast and recklessly?
Baroness Williams of Trafford
My Lords, this Question is about local government pension funds and I cannot comment on a policy that has not been announced. However, I concur that if my husband died before reaching pension age, I would be a lot better off.