§ 26. Mr. Lubbockasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will introduce legislation to empower local authorities to borrow over a period of 80 years for housing purposes.
§ Sir K. JosephNo, Sir. There is already power for local authorities to borrow over a period of 80 years for housing purposes but as a matter of policy the period is restricted to a maximum of 60 years except in the case of land.
§ Mr. LubbockDoes this mean that the right hon. Gentleman is reluctant to grant loan sanction for a period of over 60 years although he is entitled to do so under existing legislation? Would the right hon. Gentleman not agree that in the National Income and Expenditure Blue Book and elsewhere the figure of 100 years has been accepted as the life of a house and that therefore local authorities should be able to borrow over a longer period than 60 years and thus bring down rents charged to their tenants?
§ Sir K. JosephIt is prudent in a period of rapid change and obsolescence to keep the borrowing period for a 716 property well within its effective life. To increase the borrowing period to 80 years would reduce the cost to the tenant by only 2 per cent.