§ Mr. Leeasked the Secretary of State for the Environment if he will encourage the Building Societies Association to reduce the level of liquidity so as to facilitate a greater distribution of loan capital for mortgages notwithstanding the recent rise in interest rates; and if he will make a statement.
§ Mr. ShoreThe liquid stabilisation funds of most societies have already been reduced substantially since the beginning of this year. The agreed guideline level 65W of lending for house purchase in the third quarter of 1978 is £640 million a month —£30 million a month higher than in the second quarter, and considerably higher than the average committed during 1977.