HC Deb 28 November 1974 vol 882 cc620-1
Q4. Mr. Michael Latham

asked the Prime Minister whether the public speech of the Secretary of State for the Environment on housing problems to the annual conference of the National Housing and Town Planning Council in Brighton on 30th October represents the policy of Her Majesty's Government.

The Prime Minister

Yes, Sir.

Mr. Latham

Since private housing starts in the third quarter of this year were 8 per cent. below those of the second quarter of this year and 55 per cent. below those of the third quarter of last year, is it the considered view of Labour Ministers, as the Secretary of State suggested in his Speech, that a solution to the problem lies in a reduction of housing standards?

The Prime Minister

No, Sir. I notice that the hon. Gentleman has omitted to indicate the very big increase in public housing starts since the present Government came to office. But he will realise the difficulty. One cannot get houses on the ground in a matter of days, weeks or months. When we came to office, housing completions in the public sector were the lowest since 1947, starts were the lowest of any time since the war despite the great immediate post-war difficulties, and the number put into new contracts was the lowest since records were started in 1951. We have brought about a significant improvement in public sector starts and future plans, and we have also considerably eased the mortgage position compared with the disastrous situation with which we were faced when we came into office.

Mr. Ashton

Will my right hon. Friend turn his attention to the problems facing local authorities, which, it seems, will have to increase to 12 per cent. their interest charges to owner-occupiers? The Government have kept down to 11 per cent. the rate of interest charged by building societies. Is it possible to give a subsidy to local Labour councils so that they may do the same?

The Prime Minister

Irrespective of the party in office in a particular council, naturally all of us would be greatly concerned if local authority mortgagors had to pay high interest rates. Only a minority of them are paying rates in excess of 11 per cent. But the situation is still serious, and that is why the Government have made clear that we intend to study urgently the question of local authority mortgage rates as part of the wider examination of housing finance.