§ Mr. J. Griffithsasked the Minister of Health whether his attention has been called to the increasing difficulties of local authorities in proceeding with their housing programmes owing to the increased rate of interest on housing loans and the increase in the cost of building; what is the average increase in the cost per house due to these two factors, respectively, in recent years; and what steps he is taking to assist local authorities in overcoming these difficulties?
§ Mr. ElliotI am not aware of the difficulties referred to in the first part of the question. As regards the second part, the average building costs of the ordinary non-parlour type house were £ 364 for the year ended 31st March, 1938, and £ 370 for the year ended 31st March, 1939. The rate of interest on loans from the638W Local Loans Fund has increased by ⅜ per cent. since the beginning of 1937. It may be taken that an increase of £6 in building costs is equivalent to an additional rent of 1d. per week, and that an increase of ⅜ per cent. in interest is equivalent in the case of a house costing £450 to an additional rent of 6½. per week. With regard to the last part of the question, 101,424 houses were built by local authorities during the year ended 31st March, 1939, a number higher than during any year since that ended 31st March, 1928. I do not, therefore, think further steps necessary.