§ 1. Mr. Warbey
asked the Chancellor of the Exchequer what guidance he has given to bankers regarding advances to private persons to cover the initial costs of erecting houses for their own occupation.
§ Mr. Maudling
Bankers are entirely free to make short-term advances for such purposes, though it is, of course, for them to assess the credit-worthiness of individual borrowers.
The provision of long-term finance for the construction of houses is a different question and my right hon. Friend has asked the banks to conform with the general principles laid down for the guidance of the Capital Issues Committee. Forms of finance other than bank advances are usually more appropriate.
A private person intending to build a house is usually able to apply to a building society or insurance company, or to a local authority for an advance under the Small Dwellings Acquisition Acts or the Housing Act, 1949.