§ 24. Mr. HAMMERSLEYasked the Minister of Health if his attention has been drawn to the reluctance of building societies to advance 90 per cent. of the cost of houses intended to be let to persons of the working classes as contemplated by the Housing (Financial Provisions) Act, 1933; whether he is aware that certain building societies limit their advances to 90 per cent. of their own 1373 assessment of the value of these houses; and, in view of the consequent hold-up in the provision of these necessary houses, what action he is taking in the matter?
Sir H. YOUNGSome building societies have not felt able to advance moneys under the arrangement contemplated in Section 2 of the Housing (Financial Provisions) Act, 1933, but I am satisfied that any person desiring to erect houses under that arrangement is able to find a building society prepared to make advances on the terms agreed for the purpose of the Act. Intending borrowers can obtain any assistance desired in this connection from the National Association of Building Societies. As regards the second part of the question, the arrangements agreed with the building societies in connection with the Act contemplate advances up to 90 per cent. of the building societies' valuation. This seems to me a normal and proper procedure. The third part of the question does not, therefore, arise.
§ Mr. HAMMERSLEYIs there any possible procedure whereby if the building society's valuation is considered too low, there can be some check? If in fact the building society's valuation of the property is of such a character as to prevent the expected building of houses taking place, is there some machinery whereby the difference between the capital cost and the building society's valuation may be considered?
Sir H. YOUNGIt seems to me very difficult in a business transaction to go behind the valuation put upon the security in question by the party that is to make the advance.
§ Mr. HAMMERSLEYIs my right hon. Friend satisfied that in fact the expectations which were put forward when this Bill was passed by the House last year for building houses to let for working-class people are being realised?
Sir H. YOUNGMy hon. Friend is no doubt referring to the use of the guarantee scheme. I think the answer is yes. In view of the novelty of the scheme at the beginning, the use that is being made of it is as much as could be expected.