§ 37. Sir C. Osborneasked 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 8 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 what steps he is taking to relieve the increase in council rents, and building society interest charges that result from these high interest charges.
§ Mr. GreenwoodAs regards the first three parts of this question, local authorities do not normally raise external loans for 60 years, and therefore calculations on this basis are not meaningful. As for the last two parts, the Housing Subsidies Act, 1967, enables local authorities in effect to provide new housing at 4 per cent.; and house buyers can offset mortgage246W interest payments against tax liability or participate in the Government's option mortgage scheme.