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Building Cost

Volume 656: debated on Tuesday 27 March 1962

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asked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will give the total inclusive cost of building a 900 square foot standard area council house in 1951, on the basis of the completion of payment of a 100 per cent. loan paid for at the then current interest rate spread over a repayment period of 60 years; and if he will give figures for a similar type house built in 1961 and paid for on the same basis at the 1961 current interest rate.

Taking the rates of interest payable on loans from the Public Works Loan Board at the beginning of 1951 and the end of 1961, the figures would be £2,582 and £7,326, respectively.But, as I explained in reply to the hon. Member on 5th March last, most local authority housing is now financed by borrowing on the open market for much shorter periods than 60 years, and the figure of £7,326 is not in any way representative of the cost of building to local authorities.