§ 31. Mr. Frank Allaunasked the Secretary of State for the Environment if he will now take steps to extend the option mortgage scheme to give those on low incomes 5 per cent. reduction in their mortgage interest payments.
§ Mr. AmeryNo, Sir. The purpose of the option mortgage scheme is to equalise, as nearly as possible, the benefits of option mortgage subsidy and tax relief, and not to produce an advantage one way or the other.
§ Mr. AllaunBut if those on low incomes can manage to buy houses at all, they buy the less costly ones and, therefore, receive less help than the wealthy, when they should receive more. Is the right hon. Gentleman aware that many tenants are' now faced with very high rent increases and are forced into becoming owner-occupiers, which they cannot really afford, and therefore should receive additional help of the kind I suggest? Will the right hon. Gentleman seriously reconsider this proposal?
§ Mr. AmeryI do not think this subsidy is suitable for a discriminatory purpose. Its object is to put everyone as 426 far as possible on the same footing—the people who pay tax and therefore seek relief and the people who do not and therefore claim the subsidy. The introduction of means testing would multiply by several times the cost of administering the scheme.
§ Mr. McCrindleIn the light of changes into and out of the tax bracket, particularly out of it under the present Government, will my right hon. Friend consider greater flexibility in the option scheme by reducing from four years the period which must elapse before a man can move into or out of a mortgage option situation?
§ Mr. AmeryI have already secured a reduction in the period in question within which a person can switch. I will consider any representations my hon. Friend makes, but I rather doubt whether it is necessary to go beyond what I have already done.