HC Deb 30 January 1968 vol 757 cc264-5W
60. Sir C. Osborne

asked the Minister of Housing and Local Government what the total cost is of a council flat, costing £2,600 to build, after charging interest payment at the current rate of 9 per cent. for 60 years; what is its economic rent, excluding rates and subsidy; what proportion of this rent is required to pay interest charges; and why interest rates have not been kept down to 2½per cent. or 3 per cent.

Mr. MacColl

As regards the first three parts of this Question, local authorities do not normally raise loans for 60 years, nor at interest rates as high as 9 per cent. As regards the last part, the Housing Subsidies Act, 1967 in effect enables local authorities to provide new housing at a fixed interest rate of 4 per cent.