HC Deb 05 March 1957 vol 566 cc161-2
10. Mr. Moss

asked the Chancellor of the Exchequer to what extent it is his policy to encourage home ownership; and what steps he will take to that end.

Mr. P. Thorneycroft

I wish to encourage home ownership so far as I can do so within the bounds of present credit policy. The reduction in the Stamp Duty on house purchase which was announced in the last Budget is evidence of the Government's attitude in this matter.

Mr. Moss

Is the right hon. Gentleman aware that building societies are now having to increase rates of interest upon existing mortgages to 6 per cent. and on new mortgages to 6½ per cent.? Is he further aware that in a case well known to me a loan negotiated in 1951 at 4½ per cent. now has to bear an increase of 15 per cent. in the monthly repayments, that in addition rates increased last year by 30 per cent. and will now increase further by 2s. 6d. in the £ of rateable value?

Mr. Thorneycroft

As I said, I quite recognise that the credit squeeze does have an effect upon house building.

Mr. Iremonger

Will my right hon. Friend consider that he might have gained some inspiration in answering this Question from the implications in Question No. 21?