HC Deb 03 March 1970 vol 797 cc238-9
7. Mr. Speed

asked the Minister of Housing and Local Government if he will list in the OFFICIAL REPORT for each of the last 10 years the monthly repayments required for an 80 per cent. mortgage taken out for an average-priced new house in each year, allowing for changes in mortgage interest rates during this period.

Mr. Freeson

I will, with permission, list the table of figures in the OFFICIAL REPORT.

Mr. Speed

I am grateful to the Minister, but is not it a fact that a man who is earning an average industrial wage cannot qualify for such a building society mortgage because of record high prices and interest rates?

Mr. Freeson

I am afraid the hon. Gentleman is wrong on this score. Although I am unable to quote exact figures, there has been a considerable increase in the rate of owner-occupation in recent years.

Mr. John Fraser

Will the Minister publish, with those figures, comparative figures for European countries? Will not those figures show that the relative interest rates in Great Britain compared with other countries have been lower under the Labour Government than under Tory Governments?

Mr. Freeson

That is perfectly correct. Whatever difficulties we are experiencing here, and there are undoubted difficulties, the figures extant in this country compare favourably, to a degree, with those in other countries. What is more, the rate of reduction in the house-building programmes in other countries has been much greater than in this country during the past year.

Following is the information:

Monthly repayments on 80 per cent. advance over 25 years
Interest Rate Purchase Price£ Gross Net of Tax Relief*
Year per cent. approx. £ s. £ s.
1959 5½ 2,430 12 2 9 8
1960 6 2,555 13 6 10 5
1961 6½ 2,810 15 7 11 14
1962 6½ 3,005 16 8 12 10
1963 6 3,195 16 13 12 16
1964 6 3,433 17 18 13 15
1965 6¾ 3,768 21 1 15 13
1966 7⅛ 4,030 23 6 17 3
1967 7⅛ 4,283 24 16 18 5
1968 7⅝ 4,499 27 4 19 17
1969 8½ 4,775 31 2 22 8
* Tax relief has been computed for the first year of the mortgage based on earned income taxed at the standard rate.