Mortgages

HC Deb 06 December 1966 vol 737 cc1143-4

29. Mr. Murton

asked the Minister of Housing and Local Government whether he will make a statement on his discussions with the Building Societies Association regarding a Government guarantee for 100 per cent. mortgages.

39. Mr. Scott

asked the Minister of Housing and Local Government on what date he proposes to introduce legislation to introduce a Government guarantee for 100 per cent. mortgages granted by the building societies, as announced by his predecessor on 1st March, 1966.

Mr. Greenwood

The Government's proposals are explained in Part II of the White Paper "Help towards Home Ownership" (Cmnd. 3163) published yesterday.

Mr. Murton

Will not the right hon. Gentleman agree that, after this long delay and much deferred promise, it will lead to alarm, dismay and despondency of all those needy people—[Interruption.]—waiting for the 100 per cent. mortgage scheme for all these months to know that now it is not coming?

Mr. Greenwood

I am not sure whether the hon. Gentleman was present when I replied to an earlier Question from one of his hon. Friends, but there will be about 1 million people who will be delighted to know that after years and years of neglect help is in sight.

Mr. Scott

Can the right hon. Gentleman give any idea of when this pledge might be fulfilled?

Mr. Greenwood

If the hon. Gentleman will read the White Paper, he will find that it comes into operation on 1st April, 1968, and we anticipate that in the first year of operation it will cost about £30 million.

Mr. Rippon

Can we have an absolutely firm assurance on this point, because we attach great importance to it?

Mr. Greenwood

I am sorry. I think that I misunderstood. In the general uproar I was not sure whether the hon. Gentleman had referred to the 100 per cent. scheme. This is something about which it is impossible to make firm decision at the moment. [HON. MEMBERS: "Oh."] This is perfectly reasonable. We have announced that the scheme as a whole will come into operation on 1st April, 1968, but the part which relates to the 100 per cent. mortgage will have to be put off until the economic situation permits. This decision has been reached by the Government in full consultation with all the lending agencies concerned.

Mr. Murton

I beg to give notice that, in view of the unsatisfactory nature of the reply, I wish to raise the matter on an early Adjournment.