§ 52. Mr. Frank Allaunasked the Secretary of State for the Environment what a £6,500 council flat or house will cost when interest has been paid over the next 60 years at the current Public Works Loan Board long-term interest rate of 10 per cent.; and what would be the economic rent of such a dwelling.
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§ Mr. ChannonMost local authorities operate a loans pool or consolidated loans fund which reduces the effective interest rate of new borrowing. At a pooled interest rate of 8 per cent. the total cost over 60 years would be about £31,500. A weekly rent based on the loan charges at that rate would be about £1010 plus the cost of maintenance and management. These figures are unrelated to the present situation because council dwellings are subject to the fair rent provisions of the Housing Finance Act 1972.