Building Costs

HC Deb 29 January 1968 vol 757 cc876-7

47. Mr. Biffen

asked the Minister of Housing and Local Government to what extent devaluation and the accompanying measures designed to divert productive resources from domestic to exporting activities is expected to affect the cost to house building and the total numbers of houses likely to be built during the corning year, in the light of the latest available evidence in the movement of prices.

The Joint Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. Arthur Skeffington)

In the public sector costs will rise on this account by between ½ and 1½ per cent. according to the type of construction. The rise may be somewhat greater in the private sector because of the increase in Bank Rate. Tender and selling prices need not move with costs if there are compensating economies, for example on design. I expect well over 400,000 houses to be completed this year in Great Britain.

Mr. Biffen

In view of the increased costs to which the hon. Gentleman has referred, is it not clear that this must have some consequence on the level of rents which will be charged? May we, therefore, have a guarantee from the Government that there will be no attempt to frustrate the working of a market rent policy by councils or private land, lords by virtue of a reference to the National Board for Prices and Incomes?

Mr. Skeffington

The Answer which I have given to the hon. Gentleman is the best estimate which can be made at the present time, and far from attempting to frustrate the measures which the Government have passed, obviously they want to carry them out.

Mr. Frederic Harris

Surely this is a severe extra cost which will, unfortunately, with other burdens, find its way into additional rates in the forthcoming year, will it not?

Mr. Skeffington

I think it is hardly likely to affect the figures in the Answer I have given the House.

Mr. Lane

Can the hon. Gentleman give us an estimate yet of what totals will be completed in 1969 and 1970?

Mr. Skeffington

Not at this stage, but I will endeavour to do so if that question is put down.