§ Mr. Frank Allaunasked the Secretary of State for the Environment, in view of the fact that only 6 per cent. of building society mortgages in the last year have been granted on houses costing less than £6,000, if he will raise the issue of the need to grant more mortgages on older houses in his discussions with the building societies.
§ Mr. FreesonThe building societies are now lending a substantial amount at the lower end of the market. Recently over 20 per cent. of their loans—approximately £1,300 million annually—have been on pre-1919 property. The 6 per 283W cent. figure quoted represents a considerable absolute volume of mortgages granted, an annual rate of about 40,000 —of £150 million—which is roughly the same as the number and amount granted by local authorities in 1975 on the same price range of property. It also conceals wide regional variations—the comparable percentage figure for the North-West Region was 15 per cent.—approximately £45 million. I believe that the building societies' replacement of local authority lending has contributed to the movement of lending down market and I hope that the new arrangements for 1977–78 will strengthen this.