HC Deb 05 February 1969 vol 777 c121W
Mr. Prior

asked the Minister of Housing and Local Government what estimate he has made of the annual cost of the interest paid on a council house costing £3,500; and how this compares with 1960, 1964 and 1966.

Mr. MacColl

Under the annuity system of loan repayment the annual cost of interest diminishes with each successive half-yearly payment. Theaverage annual interest, assuming a loan period of 60 years and interest at the higher set of rates charged by the Public Works Loan Board, is estimated to be as follows:

1960 158
1964 162
1966 187
1969 233

For dwellings completed in 1964 the basic subsidy to be set off against the cost of borrowing would normally be £24. For dwellings completed in 1969 the subsidy will be of the order of £120.

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