§ 33. Mr. Murtonasked the Minister of Housing and Local Government what he estimates will be the effect upon the housing programme of a Bank Rate of 8 per cent.
§ Mr. GreenwoodThe direct effect of Bank Rate on new house construction is small.
As to the parallel increases in market rates, authorities building in the public sector will be protected in considerable measure by the provisions of the Housing Subsidies Act, 1967. The effect of increased mortgage rates on the private sector was explained in debate on 19th March by my right hon. Friend the Chief Secretary and myself.