§ Mr. Frank Allaunasked the Secretary of State for the Environment why he has based his estimate of local authority housing capital receipts in 1981–82 on the assumption that 33 per cent, of the aggregate sale price of council houses sold will be privately financed, in view of the fact that 26 per cent, was so financed in the year immediately preceding the introduction of the right to a mortgage under the Housing Act 1980.
§ Mr. StanleyThe estimate was based on the historic rate of private financing coupled with the fact that under the Housing Actl980 the interest rate on local authority mortgages cannot now be lower than the Building Societies Association's recommended rate, and also the fact that as from 1 April 1981 local authorities will be able to supplement their capital allocation by sums based on their cash receipts from sales.