§ Mr. Warbeyasked the Minister of Housing and Local Government and Minister for Welsh Affairs what is the economic rent of an average three-bedroom house built by a local authority from a loan repayable over 60 years at 6¾ per cent. interest; and what would be the economic rent if interest rates were 2¾ per cent. and zero, respectively, assuming in each case a fixed average charge for maintenance, management and insurance.
Dr. HillTaking the average cost of a three-bedroom house as £2,250, and allowing £15 per annum for maintenance, management and insurance, the figures would be 65s. 3d., 35s. 4d. and 20s. 2d. respectively. The cost in the market of borrowing money has of course to be met by somebody. If it were provided to local authorities below cost that would simply represent additional subsidy.