§ Sir C. Osborne
asked the Minister of Housing and Local Government how much extra interest charge will have to be paid on a £2,500 council house as a consequence of the raising of the Bank Rate from 5 to 7 per cent.; and what is the approximate total national cost to all local authorities.51W
§ Mr. Mellish
No satisfactory estimate can be made. Most housing authorities operate a loans pool which evens out fluctuations in interest rates. Changes in Bank Rate therefore have little immediate effect on the loan charges for house construction.