§ Mr. Ovendenasked the Secretary of State for the Environment what was the average cost of a three-bedroom council house built 10 years ago in South-East England; what would be the current levels of loan charges and subsidy from central Government; and if he will give an estimate of the current average market price for houses of this standard based on assessments made by district valuers in cases of council house sale, neglecting any discount offered.
§ Mr. FreesonThe average cost of a three-bedroom council house built in 1966 in South-East England was about £3,700. The loan charges in 1976£77 would be about £400. The subsidies now payable in respect of houses built before April 1975 are not related to individual dwellings.
Council house sale prices are not normally assessed by district valuers. But the limited amount of information available on the prices at which council houses of different sizes, quality and locations in the South-East were sold in the latter part of 1976 suggests that a typical figure might be about £10,000 before discount.
§ Mr. Ovendenasked the Secretary of State for the Environment what is the current average cost of constructing a three-bedroom council house in South-East England; and what is the level of subsidy payable on such a house.
§ Mr. FreesonThe average cost of constructing a three-bedroom house in South-East England in 1976 was about £13,000. Assuming an average loans fund interest rate of 11 per cent., average management and maintenance costs of about £140 and an average weekly rent of £6.75 for a new house in the South-East outside London, the level of Exchequer subsidies including rent rebate subsidy, would be about £1,000 in the first year.