§ Mr. DUNCAN MILLAR
asked the Secretary for Scotland what public funds are at present available to local authorities or individual applicants by way of advances for building purposes in Scotland; and under what conditions and at what rate of interest?
Mr. McKINNON WOOD
Under the Housing Acts the funds controlled by the Public Works Loan Commissioners may be lent for purposes connected with the housing of the working classes—
- (1) To local authorities on the security of the rates and upon the recommendation of the Local Government Board for Scotland. The present rate of interest is 3½ per cent., irrespective of the period of repayment. The maximum periods of repayment recommended by the Local
1975 Government Board are sixty years for houses and eighty years for land.
- (2) To companies, societies, and individuals, as specified in Section 67 of the Housing of the Working Classes Act, 1890, with a maximum period of repayment of forty years, the rates of interest being 3¾ per cent. and 3½ per cent. respectively, according as the period of repayment does or does not exceed thirty years.**Provided the borrowers enter into covenants restricting the rents or otherwise limiting the profits to be derived from buildings to 5 per cent. per annum on the capital outlay. Where such covenants are not entered into, the rates are 4 per cent. for thirty years, and 4¼ per cent. for forty years.
Under the Small Landholders (Scotland) Act, 1911, assistance for building purposes may be provided by way of loan to "landholders" and cottars from the Agriculture (Scotland) Fund. The conditions under which such assistance is at present given are detailed in an Order of the Board of Agriculture for Scotland dated 17th March, 1913 (S.R. and O., 1913, No. 281—S. 10), of which I am sending a copy to my hon. Friend.