Morning Line: Is this really a new 'age of aspiration' for first time buyers?

The ‘age of aspiration’ is back, housing minister Grant Shapps promised yesterday as the new coalition government gave its first indication of what changes it is planning to ring in the housing market. 

Details are thin on the ground at this stage, but the general thrust of future government housing policy is now clear. And it is a mixed bag for those frustrated potential first time buyers who have been frozen out of the market over the past decade.

On the plus side for aspirant buyers, the central message from Shapps is that the new government is committed to encouraging as many people as possible to own their own homes.

‘I don't agree with my predecessors that reducing homeownership might be a good thing,’ Shapps said. ‘Most people still want to own their own homes and I want people to know that this government will support them in that.’

'Homeownership has provided personal and financial security to millions of people in the UK...I do not believe that it is right to deny the benefits of homeownership, that we have enjoyed, to the next generation. And this new government is not in the business of pouring cold water on people's aspirations.'

Shapps also hinted at government plans to encourage more house building at a regional level, including local housing trusts that will allow the building of ‘local housing for local people’.

'For the first time incentives will create direct benefits for local communities,' he said. 'Bringing jobs, investment and yes - 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.'

On the negative side, however, Shapps suggested that the numerous schemes introduced by the last government to help people onto the housing ladder - Rent to Homebuy and Social Homebuy, for example - might be about to hit the dust.

‘A lot of money has gone into schemes that aren’t delivering,’ the housing minister said, before admitting bluntly that 'the cash for affordable housing has run out'.

Shapps also refused to comment on the government’s plans for stamp duty, and more specifically the recent exemption on properties worth less than £250,000. That might indicate that the Chancellor George Osborne is seriously considering increasing stamp duty in his emergency budget on 22 June.  

More broadly, meanwhile, Shapps delivered a depressing message to those who believe that the main obstacle to home ownership is not a lack of mortgage finance, or even a shortage of supply, but rather sky high prices.

Prices would not be allowed to spiral out of control once more, Shapps said, but neither would they be allowed to fall.