HC Deb 01 March 1966 vol 725 cc1088-9
37. Mr. Frank Allaun

asked the Minister of Housing and Local Government if, in view of the large unsatisfied demand for housing loans from councils, he will seek to fix a maximum limit on the amount local authorities can lend borrowers on any one house.

Mr. Crossman

When I have completed my review of local authority lending arrangements, and the part which they should play in the financing of house purchase, I expect to issue further advice to local authorities which will cover this point.

Mr. Allaun

Would it not be fairer if such councils as Kensington, instead of lending £20,000 to one individual who could get the money elsewhere, lent £2,000 each to ten individuals who cannot get the money elsewhere?

Mr. Crossman

Yes. It is fair to say that the Kensington Council asserts that it did not exclude anyone else because of lending the £20,000. As I shall make clear in the directive that we give, my own view is that that scale of loan is out of key with local government lending and should be left to the proper people to do it.