§ Mr. Tim Smithasked the Secretary of State for the Environment with reference to the arrangements for local authority lending for house purchase in 1977–78 under which English local authorities will receive mortgage allocations totalling £273 million for 1977–78, of which £157 million is expected to be provided by the building societies, what part of this latter £157 million is classified as public expenditure.
§ Mr. ArmstrongAdvances by the building societies to applicants referred to them by local authorities under the new support scheme do not count as public expenditure.
§ Mr. Tim Smithasked the Secretary of State for the Environment what arrangements have been made to ensure that local authorities are advised promptly as to how applications to building societies for mortgage finance under the arrangements between the authorities and the societies have been treated so that the authorities can take full advantage of their total allocation on a month-by-month basis.
§ Mr. ArmstrongThe close liaison arrangements which we asked the local authorities and building societies to set up should provide for the supply of this information.
§ Mr. Tim Smithasked the Secretary of State for the Environment what allocations have been made to district councils in Nottinghamshire, to the Nottingham City Corporation and to the Nottinghamshire County Council for 1977–78 both for direct lending by the authorities and for lending by building societies to applicants referred to them by the authorities out of the total of £157 million expected to be provided by the societies; and what allocations have been made by the Government.
§ Mr. ArmstrongThe following mortgage lending allocations have been made 559W to councils in Nottinghamshire for their own direct lending and for building society support lending in 1977–78:
Direct lending allocation £000 Building society support lending allocation £000 Nottinghamshire County Council 150 Nil Ashfield District Council 286 557 Bassetlaw District Council 189 369 Broxtowe District Council 449 872 Gedling Borough Council 277 539 Mansfield District Council 139 274 Newark District Council 160 Nil Nottingham City Council 474 1,053 Rushcliffe Borough Council 202 393
§ Mr. Tim Smithasked the Secretary of State for the Environment if he is satisfied with the operation of the arrangements for local authority mortgage lending in 1977–78, in particular with regard to mortgage finance for small terraced properties in the industrial North.
§ Mr. ArmstrongThe arrangements announced by my right hon. Friend on 8th February this year place special emphasis on the need to provide mortgage finance for the purchase of older property. A thorough-going review of progress is now being undertaken by the Department.
§ Mr. Tim Smithasked the Secretary of State for the Environment if he will introduce new arrangements for local authority lending for house purchase under which the building societies make a block loan available to local authorities so that they are able to lend and administer money in accordance with provisions for which they are solely responsible.
§ Mr. ArmstrongSums made available to local authorities under such an arrangement would count against the overall public expenditure provision for house purchase loans. However, the building societies have approved loans totalling £156 million in the past 18 months under the support scheme and agreed to lend £157 million in the financial year 1977–78 to house purchasers nominated by local authorities in England. The Green Paper on housing policy urges building societies and local authorities to build on this foundation of co-operation.