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Finance

Volume 155: debated on Wednesday 21 June 1922

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asked the Minister of Health if he will give, in respect of the sum of £9,630,000 provided in this year's Estimates as a grant towards the deficit on housing schemes, the total number of houses on which it is calculated, distinguishing between the number of houses that are occupied, the number that are in process of completion but not occupied, and the number which are not yet commenced; the capital cost on which interest and redemption is calculated, the rate of interest charged, and the provision allowed for redemption; the other outgoings, giving separately the amounts calculated for repairs, insurance, rates, losses, and voids; the rents calculated to be received within the current year; and the amount based on a penny rate that is debited to the local authorities?

£9,400,000 of the total Estimate is the anticipated deficit in excess of a penny rate for the current financial year in respect of 176,000 houses, of which 100,000 were available for occupation at the beginning of the year, 52,000 were in course of erection and 24,000 had not then been started. The capital cost is estimated at £190,000,000. Interest and redemption have been calculated at 6·8 per cent. per annum in respect of £140,000,000 and 6·3 per cent. in respect of £50,000,000; the periods allowed for redemption are 20 years for roads, 30 years for sewers, 60 years for building and 80 years for land. The anticipated income during the year from rents, excluding rates, costs of repairs, management, voids, etc., is £2,200,000. The amount provisionally fixed as the allowance for repairs is 15 per cent. of the total rent (excluding rates), for management 5 per cent., and for losses and voids 5 per cent. It is estimated the net average rent income after allowing for outgoings will be £16 per house for a full year's occupancy. The estimated produce of the penny rate to be contributed by local authorities is £750,000.

asked the Minister of Health the number and actual cost of houses paid for to date erected by local authorities under the Housing Acts of 1919, and the rate of interest on and period of the loans borrowed to pay for the same?

116,000 houses have been completed to date, but the bulk of these are included in contracts still proceeding. Final accounts had been passed to the end of April for less than 5,000 houses and the actual cost of building in these cases works out at an average of £916 for the house alone. It is estimated that the total all-in cost of the houses in question will be £1,076. As regards loans, I would refer the hon. Member to the statement furnished in reply to his question of 22nd March.