HC Deb 05 February 1963 vol 671 c222
3. Mr. Frank Allaun

asked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will make a statement on his discussions with the Building Societies' Association about loan policy for houses.

Sir K. Joseph

I am not yet ready to make a statement.

Mr. Allaun

Are not cheap loans the key to the problem? Will the Minister consider subsidising loans at least for the lower-priced range of houses? For instance, could he not introduce loans at 3 per cent., because 6 per cent. is far too high for most people who want to buy houses?

Sir K. Joseph

I agree that interest rates are a significant factor. There are, however, other very significant factors, such as the size of the deposit and the length of loan. But I am glad to see that a number of building societies are looking at these factors.

Mr. Lipton

Will the Minister also consider with the building society representatives the possibility of the building societies doing a little more to encourage the sale of houses to rent?

Sir K. Joseph

Yes, I think that is a very important point.

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