HC Deb 23 April 1969 vol 782 cc454-5
16. Mr. John Robertson

asked the Secretary of State for Scotland what estimate he has made of the numbers of wage-earners who satisfy the conditions laid down by building societies in order to secure a loan for newly built three and four apartment houses; and if he will make a statement.

Dr. Dickson Mabon

I cannot make such an estimate because building societies do not operate uniform conditions but use a wide variety of criteria in deciding whether to make a loan. In 1967, one quarter of the new mortgage borrowers in Scotland earned less than £1,200 a year.

Mr. Robertson

I thank my hon. Friend for that Answer. He will realise that the most important factor in determining whether one can have a loan for building new property is annual net earnings. Will he see whether the ratio of earnings and housing costs in Scotland is the main factor why there is such a vast difference between the number of owner-occupied houses being built in Scotland and the number being built in England and Wales?

Dr. Mabon

I thank my hon. Friend for that. This deserves full examination and when we have the Sidwell Report we shall couple it with our information from the building societies. We have no evidence that building societies have any bias against wage earners, but if any hon. Member has such evidence, I should be happy to receive it.

Mr. Bruce-Gardyne

In view of his well-known views about the effect of a Labour Government on the rates of charges by building societies, will enlisting the assistance of the right hon. Member for Belper (Mr. George Brown) be considered?