§ 21. Mr. Frank Allaunasked the Minister of Housing and Local Government and Minister of Welsh Affairs if he will take powers to grant financial assistance to building societies, to enable them to make loans to cover half the cost of installing baths, hot water and inside toilets in older houses where improvement grants are applicable.
§ Mr. RipponMy right hon. Friend sees no case for taking new powers. Building societies already can and do make advances for improvement works. In addition, local authorities are empowered to make loans for the improvement of houses and there has been a steady rise in recent years in the amounts advanced by them for this purpose.
§ Mr. AllaunIs the hon. Member aware that the excuse for the miserable lack of progress in improving older houses is that some landlords cannot afford to lay out their half of the capital, even though they can recoup it in higher rents? Will he have another look at this idea, since the building societies in 1959 were enabled—rightly so—to provide buyers of older houses with money because the Government gave them low interest loans? Could not local authorities be helped similarly with low interest loans for this purpose?
§ Mr. RipponI do not want to go into the question of interest rates. We have no evidence that owners or anyone wishing to improve their property are having difficulty in borrowing money. Local authorities are lending more money than ever before for this 682 and other purposes. Last year they lent £99 million compared with £66 million the year before.