Professor Philip Lane:

There are several issues involved. First, how does one ensure more affordable houses are built? That will done by using a mix of private initiatives and public policy. Second, there is the cost of mortgages, which this committee has focused on before. We are seeing a bit more competition in the market and Mr. Sibley will comment on the matter. As the economy recovers and confidence levels in the economy rise then the prospects for more competitive pricing improves but that is a separate issue. There is only a certain number of houses available to buy. If we make credit policies easier, it will not result in more houses being available for purchase.