§ Mr. Frank Allaunasked the Secretary of State for Northern Ireland if he is aware that building societies are obtaining a considerable influx of funds from Northern Ireland, which is itself experiencing mortgage shortage; to what extent the Housing Executive is replacing building societies as a source of mortgage finance as a lender of the last resort; to what extent the building societies are now providing funds to the Housing Executive for this purpose; and if he will make a statement on the progress of the scheme.
§ Mr. CarterBuilding societies operate at a national level and do not publish accounts summarising their operations in Northern Ireland.
There is no evidence of a mortgage shortage in Northern Ireland, and I am in general satisfied with the level of funds at present available for house purchase in Northern Ireland from building societies and the Housing Executive.
The Executive mainly lends to first-time purchasers on lower incomes who are buying older houses and who have been unable to obtain loans from building societies. In 1977–1978 the Executive will lend up to £10 million while lending by building societies may exceed £80 million.
Under an agreement made with the Building Societies Association a number of societies are lending to the Department of Finance for on-lending to the Housing Executive. £5 million are being provided under this arrangement in the current financial year and further sums will be available in 1978–79.