§ Mr. Warrenasked the Secretary of State for the Environment what are the latest data he has on the average total cost of building and financing loans on council flats and houses with one, two and three bedrooms, respectively.
§ Mr. Tracey[pursuant to his reply, 30 January 1987]: Provisional figures for the mean construction costs, excluding land, site works and fees, in tenders accepted by English local authorities, and the implied loan charges, are as follows.
Dwelling type Average construction costs £
Loan charges in first year £
Total loan charges(present value) £
One bedroom 18,700 2,107 37,347 Two bedroom 18,200 2,051 36,349 Three bedroom 20,900 2,355 41,741 These averages include dwellings for special needs. The figures for loan charges have been calculated on the assumption that construction costs are financed by loans for 60 years at an interest rate of 10 per cent. repaid through a sinking fund with an accumulation rate of 5 per cent.