HC Deb 03 November 1976 vol 918 cc598-9W
32. Mr. Ronald Atkins

asked the Secretary of State for the Environment what conclusions he has reached in his discussions about the need for mortgage facilities for the large numbers of empty older, cheaper houses that do not at present qualify for mortgages from building societies.

Mr. Freeson

Building societies' lending on older houses has been increasing steadily. Advances of about £90 million had been offered to local authority nominees by the end of September under the £100 million scheme, and discussions are continuing with the Building Societies' Association on how best to fill the gap arising from the restriction in local authority lending in 1977–78. Loans on older property will continue to figure prominently in lending by local authorities within the public resources available to them.

46. Mr. Frank Allaun

asked the Secretary of State for the Environment if he will make a statement on his discussions with the building societies on the evidence that some societies have redlined whole districts of certain inner-city areas, refusing applications for mortgages therein, and also that they have turned down applications for mortgages on older types of houses submitted by local authorities on behalf of residents; and what action he proposes to remedy this situation.

Mr. Freeson

Although this appears to have been a local and not a general problem, I am concerned about it. It is, therefore, one of the subjects being discussed by the Department and the building societies as a priority issue in the talks on the arrangments for replacement of the reduced local authority lending in 1977–78.