HC Deb 02 February 1976 vol 904 cc409-10W
Mr. Walter Johnson

asked the Secretary of State for the Environment what progress has been made by the building societies in setting up their own stabilisation fund.

Mr. Freeson

In consultation with the Government the Building Societies Association has recommended to its members to adjust their lending so as to support an active housing market and at the same time set funds aside to stablise the flow of mortgage finance in future. The proportion of societies' assets held in liquid form has increased to some 20 per cent. while at the same time lending has been at record levels—some £5,000 million in 1975.

Mr. Walter Johnson

asked the Secretary of State for the Environment if he will arrange to meet the leaders of the Building Societies Association to discuss with them the prospect of interest rates being lowered below 11 per cent.

Mr. Freeson

My Department already maintains regular contact with the Build- ing Societies Association on all matters affecting the housing market.