HC Deb 07 May 1968 vol 764 c193
5. Mr. Murton

asked the Minister of Housing and Local Government what is his estimate of the percentage increase in the cost of a three-bedroomed house during 1968.

Mr. MacColl

The costs which builders have to take into account in fixing tender or sale prices will rise on account of the Budget by about 1½ per cent. over the year. But this increase need not give rise to the same increase in tender or sale prices.

Mr. Murton

Between October, 1964, and early 1967 did not the cost of housing rise by 25 per cent.? Is not this further increase caused by rising land prices, devaluation and higher interest rates?

Mr. MacColl

These increases need not necessary be reflected in the increases in tenders because of the possibilities of increasing productivity and the advantages of fixed-price contracts.