§ 5. Mr. Frank Allaunasked the Chancellor of the Exchequer if he will now introduce legislation to authorise Government loans to local authorities and building societies at 4 per cent. or lower interest rates, to permit 95 per cent. loans on pre-1919 houses at not more than ½ per cent. higher rates.
§ Mr. du CannNo, Sir.
§ Mr. AllaunDoes the Minister realise that, despite the desperate housing need, 253 particularly of young couples and of families living in overcrowded conditions, house buying is actually beginning to tail off in some areas because people cannot afford the mortgage interest rates? Is he aware that on Monday, 24 local authorities in the North-West decided to ask the Government to receive a deputation? If the Minister proposes to give the old reply that he cannot insulate housing from the general interest rates, why have the Government done it for the Ford, Colville and other organisations?
§ Mr. du CannI think it would be right to say that interest rates are only one of the matters which have to be taken into account in considering this problem.
§ Mr. JayIn the present economic circumstances how can the Government possibly justify these high interest rates?
§ Mr. du CannThe right hon. Gentleman will have noted that interest rates have been falling a little lately.