HC Deb 18 April 1957 vol 568 cc2095-6
47. Mr. Lipton

asked the Chancellor of the Exchequer whether he will establish a building society under Treasury control for granting loans to house-purchasers, subject to small deposits and low fixed interest rates.

The Financial Secretary to the Treasury (Mr. J. Enoch Powell)

No, Sir.

Mr. Lipton

Is the hon. Gentleman aware that very heavy deposits and very high interest rates, which are liable to be raised at any time, make the business a nightmare for young married couples in particular? Will not the Government take some positive action on the lines suggested in this Question to encourage the property-owning democracy about which we have heard from time to time?

Mr. Powell

The question of assistance to house purchase, either by local authorities or the central Government, is one for my right hon. Friend the Minister of Housing and Local Government.

Mr. Jay

What exactly does the policy of the Government achieve in making it almost impossible for people to buy houses?

Mr. Powell

If the right hon. Member is referring to the general effects of the policy of the Government in regard to credit, that is a very much wider matter.

Mr. D. Howell

Is the Minister aware that young couples engaged in buying houses find that every time the Bank rate goes up they are immediately faced with an increase in mortgage rates, but they are disgusted to find that now the Bank rate is showing signs of going down building societies have not followed that lead by reducing mortgage rates? Would he give the view of the Government on that situation?

Mr. Powell

Mortgage contracts between borrowers and building societies are contracts between private persons.

Mr. Jay

Whatever may be the wider merits or demerits of the Government's policy, what is the advantage of making it exceedingly expensive for ordinary people to buy houses?

Mr. Powell

As I have said before to the right hon. Member, that is only one aspect of the Government's general policy in the control and restriction of credit, which cannot be debated on this Question.

Mr. Awbery

Is the Minister aware that many local authorities adopt the principle laid down in the Small Dwellings Acquisition Act in order to encourage people to buy their houses? Could not he extend this principle to the State, because only about half of the local authorities adopt the Act?

Mr. Powell

That is a question for my right hon. Friend the Minister of Housing and Local Government.

Mr. Lipton

In view of the unsatisfactory nature of the answers of the hon. Member to all the questions, I beg to give notice that I shall raise the matter on the Adjournment at the earliest possible moment.