§ Mr. Bill MichieTo ask the Chancellor of the Exchequer what is his latest estimate of the additional cost which house buyers will have to meet this year as the result of the interest rate rises, the cut in MIRAS and the costs of private insurance to cover the withdrawal of income support. [17920]
§ Mr. Nelson[holding answer 19 April 1995]: Housing costs have fallen substantially in recent years. For the average existing homeowner, even after taking into account the recent interest rate rises and the reduction in MIRAS, housing costs will still be over £1,550 per annum lower than in late 1990.
The combined effect of the recent increase in interest rates and the reduction of MIRAS from 20 to 15 per cent. 529W will be to increase housing costs for the average existing home owner by about £270 per annum.
Without knowing what proportion of house buyers will insure themselves following the changes in income support, it is impossible to estimate what, if any, additional costs house buyers will incur.