§ Mr. Michael Latham
asked the Secretary of State for the Environment whether he will give details of the statistical assumptions which he made about the monthly levels of lending by building societies for purposes other than house purchase when he agreed with the Building Societies Association the total lending target of £650 million net new commitments per month for April, May and June.
§ Mr. Peter Shore
The agreed monthly guideline of £650 million included an estimate of £40 million for lending for purposes other than house purchase, such as improvements. But as this "peripheral" lending does not directly affect house prices, both sides of the joint advisory committee agreed that it need not be kept to this level. The guideline for purchase is thus £610 million a month In April, the BSA estimates that building societies lent £620 million. Both figures exclude peripheral lending.