§ Mr. Arthur Lewisasked the Minister of Housing and Local Government whether he is aware of the increase in the tender price of three-bedroomed houses built for the London boroughs during the past five years and that, whereas the cost was £1,825 in 1960, by 1965 this had risen to £3,000; what were the reasons for this increase of 65 per cent. in five years; to what extent wages increases for building trades workers contributed to these increases; and what action he proposes to take, by legislation or otherwise, to reduce these prices.
§ Mr. MellishIt is not possible to say what proportion of the increased cost can be attributed to wage increases, since no estimates are available of the change in productivity for the particular group of workers. Other factors leading to higher costs include the higher price of materials, higher overheads, and better plans, layouts and amenities inside and outside the dwelling. For major schemes the London boroughs now seek cost targets from my Department at sketch plan stage, and this and the other measures my right hon. Friend is now considering will help to limit the cost of housing.