The credit crunch had just begun to bite when Caroline Flint, then Employment Minister, inherited the tricky housing portfolio in January. Six difficult months on, and with no respite in sight, desperate housebuilders and aspiring buyers are looking to her to feel their painamp;#33; - and find solutions.

To her chagrin, Ms Flint has instead become better known for her stylish appearance, her suggestion that unemployed council tenants be forced to work and her failure to tuck confidential briefing papers into her handbag.

These are mere distractions, says Ms Flint, as, in a new spirit of ministerial openness, she tells Bricks & Mortar how eco-towns can make Britain a world leader in green housing.

Q Is it still your view that house prices will fall by 5-10 per cent over the next year?

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A That was the view that was reflected by the data that we were getting in: I start each day looking at the press cuts on the housing market.

Q How depressing for you...

A Some of it is depressing, but there's still a lot of volatility in the opinions being expressed. That's why it's such a difficult call. I am reliant - and I'm happy to admit this - on being informed by experts.

One of the questions I've asked building companies is: ‘Why didn't you see this coming?' And they've said: ‘We never thought that things would be as difficult as they are'. Things moved very, very quickly. The public understand that the Government can't just wave a magic wand, but they do want to see us responding and taking practical action.

Q Housebuilding is at its lowest level since 1945. How will the government target of 3 million new homes by 2020 be met?

A That target is as relevant today as it was yesterday and will be tomorrow. We need more housing. But clearly we are in a different climate to last year. What I don't want to do is make a quick decision that looks good but has no substance to it.

I have to be very sure that public money is going to be used to good ends. I'm having discussions about what we could do with land deals, buying more homes, shared-equity schemes and improving the offers that we provide for first-time buyers.

Q Agents report that buyers do not request home information packs. Do you regret their introduction?

A Look, where did we start from on this? It was responding to public concern that buyers often had to pay duplicate costs for information that the seller should take responsibility for. I think that desire to stop duplication and have information in one place for people to access is as important today.

Hips get a bad rep but I don't believe that they have affected the market and I think it's rather cheeky of people to try to drag them in. I think we can improve the product and I'm willing to work with agents and solicitors on this.

Q Isn't it overcomplicated to tax first-time buyers in the form of stamp duty, then subsidise them under shared-ownership schemes?

A You can do whatever you want on stamp duty, but if mortgage lenders aren't lending there's no point. My colleagues in the Treasury are also looking at these things. There is some validity in some schemes are overcomplicated.

We changed the programme in the Budget, but I think there's more we could do. There is some interest in a finance package in which lenders and housebuilders would be part, rather than just a government-led scheme.

Given the terrible - the difficult - situation we're in, might something come out of adversity to offer us a more sustainable approach to building and buying homes? In a weird sort of way, without the credit crunch, we might not have had that.

Q Will eco-towns really provide innovative green living?

A There are two parts to eco-towns: we can provide more affordable housing to buy and rent in parts of the country that are under extreme pressure both in terms of supply and affordability.

Equal to that is the opportunity to develop housing that is cleaner and greener. We are now recognised as a world leader in terms of zero-carbon homes and the sort of innovation that is happening in our building industry, despite the credit crunch. Eco-towns are one way in which we can express this innovation.

Q Aren't the 15 potential eco-towns meant to be on brownfield sites?

A I don't think we ever said it would be exclusively brownfield. With the locations we are looking at there is substantial use of brownfield but some greenfield too. There will be no building on the green belt.

Q Will there be a list defining “eco”?

A We are looking for some minimum standards but also each location has to consider infrastructure - transport, water supply and how it engages with existing communities. I am not trying to create cloned communities, where every street has to be laid out a certain way and every door painted the same colour. I'm not attempting to build “Flintgrads” in the UK.

Q What about the opponents of eco-towns?

A Part of this first stage is myth-busting. Local governments were concerned that eco-towns would be added to existing housing targets. This is not the case: eco-towns will be part of the overall target.

There have been legitimate concerns from people living near the proposed sites. Whether or not these locations end up with an eco-town, these sites are potentially ripe for development because of the severe shortage of housing.

Q Do you find the press coverage of your appearance insulting?

A Yes. Many women have less power and less voice than I have, so I wouldn't want to complain too much. But it is frustrating. If you're walking to Downing Street and not smiling you're a moany old bag, and if you are smiling, you're playing to the cameras.

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