§ Mr. Sillarsasked the Secretary of State for Scotland (1) what is his latest estimate of the cost of a local authority four-apartment house; what is the total cost involved in paying off the capital costs at current Public Works Loan Board rates of interest; and what would the total cost be if Public Works Loan Board rates were reduced by 4 per cent.;
(2) what is the rate of interest now charged to district councils for housing construction;
(3) what is his latest estimate of the economic rent of a local authority four-apartment house at current PWLB rates of interest; how much of the economic rent goes to interest payments; and what would be the economic rent if the Public Works Loan Board interest rates were reduced by 4 per cent.
§ Mr. Hugh D. BrownThe estimated average construction cost of a local authority four-apartment house in the fourth quarter of 1976 was £10,886, excluding the cost of site servicing and fees, as against a revised estimated figure of £11,109 in the previous quarter. At414W the current Public Works Loan Board interest rate of 14 per cent. the weekly charge needed to cover the loan repayments would be £29.32 of which the element for interest would vary throughout the period of the loan. If the interest rate was reduced by 4 per cent. the corresponding figure would be £21. Total interest repayments are not meaningful unless discounted over the period of the loan. These figures exclude maintenance and management costs and therefore do not represent the full economic rent.