Housing (Hansard, 2 April 1987)

§ Mr. Chris Smith
asked the Secretary of State for the Environment, pursuant to his. reply to the hon. Member for Islington, South and Finsbury, of 16 January, Official Report, columns 331–2, on what basis his Department estimates the cost of (a) building a council house or flat in Greater London at around £7,000 in the first year and (b) acquiring a council house or flat for letting in Greater London at around £5,500 in the first year; and if he will identify separately his Department's estimate of the cost of (1) repaying interest on capital, (2) management and (3) maintenance of the property.

§ Mr. Tracey
The information requested is given in the following table. The figures relate to 1985–86 London costs and are based on an interest rate of 11 per cent.

New Build
£
Acquisition
£

Interest on capital ¹6,127 ²4,645

Management 437 437

Maintenance 413 413

6,977 5,495

¹ Based on land and construction costs (including fees) for local authority dwellings.

² Based on uprated 1984 prices for local authority dwellings plus an allowance of £10,000 for renovation costs. (Since the calculation was made 1985 prices have become available; the effect would be to raise the interest figure shown to £4,708).

§ Mr. Wigley
asked the Secretary of State for the Environment what was the current and capital expenditure per head on housing in England during the last year for which figures are available.

§ Mr. Tracey
Current expenditure by English local authorities and new towns from their housing revenue accounts in 1985–86 represented on average £122 per head of population.
Capital expenditure by local authorities, new towns, the Housing Corporation and central Government on housing in England represented on average £74 per head of population.

§ Mr. Wigley
asked the Secretary of State for the Environment what was the total public expenditure on housing in the United Kingdom as a proportion of the gross domestic product in each year from 1976 to the latest year for which figures are available.

§ Mr. Tracey
Total public expenditure on housing in the United Kingdom from 1976 to 1985 is shown in the table 609W as a percentage of gross domestic product at factor cost. The definition is the same as in the answer given to the hon. Member on 23 May 1986 at columns 370–371 in the Official Report. Figures for some of the earlier years have been revised in the light of later information.

Public expenditure on housing as percentage of gross domestic product at factor cost

Per cent.

1976 3.9

1977 3.6

1978 3.3

1979 3.4

1980 3.5

1981 2.6

1982 2.6

1983¹ 2.9

1984 3.0

1985 2.5

¹ Discontinuity between 1982 and 1983 is due to introduction of housing benefit and consequent exclusion of rent from supplementary benefit paid to tenants.

§ Mr. Soames
asked the Secretary of State for the Environment what are the objectives of Her Majesty's Government's housing policy.

§ Mr. John Patten
Our policy is to encourage the maximum spread of owner-occupation, and the maintenance and improvement of the existing housing stock.
The Government also hope to introduce further legislation to encourage the supply of more homes for renting in the private sector, while ensuring a vigorous housing association movement.

	New Build £	Acquisition £
Interest on capital	¹6,127	²4,645
Management	437	437
Maintenance	413	413
	6,977	5,495
¹ Based on land and construction costs (including fees) for local authority dwellings.
² Based on uprated 1984 prices for local authority dwellings plus an allowance of £10,000 for renovation costs. (Since the calculation was made 1985 prices have become available; the effect would be to raise the interest figure shown to £4,708).

Public expenditure on housing as percentage of gross domestic product at factor cost
	Per cent.
1976	3.9
1977	3.6
1978	3.3
1979	3.4
1980	3.5
1981	2.6
1982	2.6
1983¹	2.9
1984	3.0
1985	2.5
¹ Discontinuity between 1982 and 1983 is due to introduction of housing benefit and consequent exclusion of rent from supplementary benefit paid to tenants.