§ Mr. Raceasked the Secretary of State for the Environment if he will set out the method by which the housing cost yardstick is calculated for both local authority and housing association schemes; and if he will define the way in which the concept of "indicative costs" is used by his Department.
§ Sir George YoungThe operation of the housing cost yardstick is set out in DOE circular 36/67. The housing cost yardstick has not applied to local authority schemes since 1 April 1981. It will cease to apply to housing association schemes funded by the Housing Corporation from 1 April 1982, and to those funded by local authorities from a date to be agreed thereafter. The form and application of the new system of total indicative costs, which is to replace the yardstick is set out in the annex to the memorandum of authorisation issued by my Department in March 1981 in respect of the Housing 187W Corporation's approved development programme for England. A copy was placed in the Library on 18 March 1981.