§ 32. Mr. Molloyasked the Minister of Housing and Local Government what plans he has to assist local authorities in their housing programmes by providing capital loans at minimum rates of interest.
§ Mr. GreenwoodThe Housing Subsidies Act, which received Royal Assent in May, introduced a new system of housing subsidies which provides, in effect, a stable rate of 4 per cent. on loans raised by local authorities for house building. This applies to all houses approved since 25th November, 1965, and, in the case of certain authorities with exceptional problems of slum clearance or housing shortage, to all houses completed after that date.
§ Mr. MolloyIs my right hon. Friend aware that, while this is an improvement, it is not making much of an impact on the general problem of housing. Is my right hon. Friend further aware that high interest rates are strangling the efforts of progressive local authorities in providing 317 homes? What is more, it is also bedevilling their planning of buildings generally.
§ Mr. GreenwoodMy hon. Friend should really try to observe a sense of proportion about this. The number of houses started in the public sector in the first six months of this year was 23,604 more than it was in the corresponding period for last year. On a typical local authority house costing £3,800, the basic subsidy under the new Act will be £85, which should be compared with £24 before the Act was passed.