Private Home Ownership and Local Authority Housing (Hansard, 20 December 1968)

§ Mr. Alfred Morris
asked the Minister of Housing and Local Government what was the average benefit to owner-occupiers and council-house tenants, respectively, from the cost to the Exchequer, during the financial year 1967–68, of private home ownership and local authority rented housing; and what are the estimated figures for 1968–69.

§ Mr. K. Robinson
The information is as follows:

Great Britain Average Amount (estimated)

1967–68 1968–69

£ £ s.

Government subsidies to local authorities^* 23 26

Mortgage interest relief to house mortgagors† 42 43 10

^*These subsidies are payable on the provision of new dwellings under all subsidy legislation, including subsidies payable to the New Towns Commission and Development Corporations. The typical subsidy payment on new dwellings provided under current subsidy legislation is of the order of £108 a year for 60 years. In practice, the cumulative subsidy payments to local authorities are not evenly spread among all tenants but are used mainly to reduce the rents of new housing and to meet the cost of rent rebates for tenants with lower incomes.

† These average figures are calculated by reference to all owner—occupiers in receipt of tax relief on mortgage interest and include assistance to be provided under the option mortgage scheme in 1968–69. If the averages were calculated by reference to all owner—occupiers, including those not in receipt of tax relief, the figures would be £21 and £23 for 1967–68 and 1968–69, respectively.

§ Mr. Alfred Morris
asked the Minister of Housing and Local Government what are the comparative figures for the financial year 1967–68 of the cost to the Exchequer of local authority rented housing and private home ownership; and what are the estimated figures for 1968–69.
511W

§ Mr. K. Robinson
The information is as follows:

Great Britain Total Amount 1967–68 (Estimates) 1968–69

£ million

Government subsidies to local authorities^* 117 137

Mortgage interest relief to house mortgagorst † 180 202

^*These are subsidies payable on the provision of new dwellings under all subsidy legislation, including subsidies payable to the New Towns Commission and Development Corporations. These figures exclude all loans provided by the Government for housing.

† The figure for 1968–69 includes an estimate of assistance to be provided under the option mortgage scheme.

Great Britain	Average Amount (estimated)
	1967–68	1968–69
	£	£	s.
Government subsidies to local authorities^*	23	26
Mortgage interest relief to house mortgagors†	42	43	10
^*These subsidies are payable on the provision of new dwellings under all subsidy legislation, including subsidies payable to the New Towns Commission and Development Corporations. The typical subsidy payment on new dwellings provided under current subsidy legislation is of the order of £108 a year for 60 years. In practice, the cumulative subsidy payments to local authorities are not evenly spread among all tenants but are used mainly to reduce the rents of new housing and to meet the cost of rent rebates for tenants with lower incomes.
† These average figures are calculated by reference to all owner—occupiers in receipt of tax relief on mortgage interest and include assistance to be provided under the option mortgage scheme in 1968–69. If the averages were calculated by reference to all owner—occupiers, including those not in receipt of tax relief, the figures would be £21 and £23 for 1967–68 and 1968–69, respectively.

Great Britain	Total Amount 1967–68	(Estimates) 1968–69
	£ million
Government subsidies to local authorities^*	117	137
Mortgage interest relief to house mortgagorst †	180	202
^*These are subsidies payable on the provision of new dwellings under all subsidy legislation, including subsidies payable to the New Towns Commission and Development Corporations. These figures exclude all loans provided by the Government for housing.
† The figure for 1968–69 includes an estimate of assistance to be provided under the option mortgage scheme.