§ Sir George Youngasked the Chancellor of the Exchequer what amounts are estimated for interest relief on house purchase mortgages—excluding relief on option mortgages—for the years 1975–79 on the same price basis as housing public expenditure forecasts in Command Paper No. 5789.
§ Mr. Robert SheldonThe estimated cost of tax relief for mortgage interest in 1975–76 at current prices is £950 million. I regret that it is not possible to provide an estimate for future years on the same price basis as housing public expenditure forecasts in Command Paper No. 5879. The cost of mortgage interest relief in future years will depend on a number of factors, including movements in mortgage interest rates; personal incomes; tax rates, allowances, and rate bands.
§ Sir George Youngasked the Chancellor of the Exchequer what were the amounts of interest relief on house purchase mortgages—excluding relief on option mortgages—for the years 1969–75 471W on the same price basis as housing public expenditure estimates in Command Paper No. 5789; what were the totals of owner-occupied dwellings in the corresponding years 1969 to 1975; what were the average house purchase mortgage rates of
Year Cost of tax relief on mortgage interest payments Number of owner-occupied dwellings Average house purchase mortgage interest rate (Building Societies) Standard rate of income tax At current prices Revalued at 1974–75 prices* £m. £m. '000 Per cent. Per cent. 1969–70 … 235 360 9,337 8.07 41.25† 1970–71 … 300 433 9,567 8.59 41.25† 1971–72 … 340 454 9,809 8.59 38.75† 1972–73 … 390 488 10,095 8.26 38.75† 1973–74 … 500 573 10,356 9.59 30.00‡ 1974–75 … 700 700 10,536 11.05 33.00‡ * Revalued on the basis of the Consumers' Expenditure Deflator which was used for housing subsidies within the total for housing expenditure in Command Paper No. 5879. † If the taxpayer had earned income only then the effective rate of relief for a standard rate taxpayer was seven-ninths of the standard rate. ‡ Basic rate.