HC Deb 01 December 1987 vol 123 c546W
Mr. Soley

To ask the Secretary of State for the Environment if he will make available the basis of the formula for the system of unit cost limits and how it applies(a) in areas with major housing problems and high land values and (b) in areas with fewer housing problems and where land is cheaper.

Mrs. Roe

The proposed cost figures and groups for the new system of admissible cost limits were derived from an examination of house prices and construction costs in both the private and public sectors. The sources used were Nationwide Anglia Building Society data on mortgages, the Valuation Office's property market report and data on projects carried out in 1986–87 by local authorities and housing associations. Analysis of these data places authorities in groups according to the cost of land and construction. The same formula applies for all groups throughout the system.