§ 66. Mr. Awberyasked the Minister of Housing and Local Government if he is aware that the increase in the rate of interest has raised the economic rent of a £2,000 house to £3 2s. 10d. a week plus rates; and, having regard to the fact that few workers are able to meet this liability, what steps are being taken to facilitate house ownership.
§ Mr. H. BrookeLocal authorities may make advances for house purchase under either the Small Dwellings Acquisition Acts or Section 4 of the Housing Act, 1949. Under the former, interest rates are fixed by statute for the whole period of the loan and I have no discretion to vary them. Under the latter, the interest rates require my approval, and I would refer the hon. Member to Circular No. 54/57 issued yesterday, where it is pointed out that I will be ready to consider new or revised schemes which provide for varying rates of interest.
New borrowers under Section 4 may therefore not have to pay the initial rate of interest for the whole period of the loan, but a varying amount related to borrowing rates as the period progresses.
§ Mr. Awberyasked the Minister of Housing and Local Government if he is aware of the deterioration in the housing position in the country; and what steps are being taken to restore housing subsidies and to make it easier for local authorities to borrow money at preferential rates of interest so that they can more adequately meet the housing needs of their people.
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§ Mr. H. BrookeThe housing position in the country has vastly improved over the last six years, and will go on improving. Subsidies are still available for the greatest needs; and provided that local authorities adopt fair and wise rent policies they can continue to provide, and to let at reasonable rents, houses for those who must look to them for help.