§ Mr. Priorasked the Minister of Housing and Local Government what estimate he has made of the annual cost of the interest paid on a council house costing £3,500; and how this compares with 1960, 1964 and 1966.
§ Mr. MacCollUnder the annuity system of loan repayment the annual cost of interest diminishes with each successive half-yearly payment. Theaverage annual interest, assuming a loan period of 60 years and interest at the higher set of rates charged by the Public Works Loan Board, is estimated to be as follows:
£ 1960 … … … … 158 1964 … … … … 162 1966 … … … … 187 1969 … … … … 233 For dwellings completed in 1964 the basic subsidy to be set off against the cost of borrowing would normally be £24. For dwellings completed in 1969 the subsidy will be of the order of £120.