§ Lord Balniel
asked the Minister of Housing and Local Government why he has issued a direction to increase the interest rates on the mortgage of houses being sold by the New Towns Commission from 7⅛ per cent. to 7⅝ per cent., in view of the fact that this conflicts with the general Government policy of keeping prices stable.
§ Mr. Greenwood:
The rate of interest on Exchequer advances to the Commission has been increased to 7⅜ per cent. The new interest rate of 7⅝ per cent. on Commission mortgages is necessary to cover the cost of servicing the Commission's borrowing and of administering the mortgage.