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Volume 888: debated on Thursday 13 March 1975

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asked the Secretary of State for the Environment what is the current cost of building a new house by local authorities in England and Wales, including the cost of land ; what the average commercial weekly rent of such a new house would be, if charged on the open market, to cover all charges, and if charged on the fair rent principle ; and if he will show as a proportion of such weekly rent, what element is borne by the taxpayer and what borne by the ratepayer.

On the latest available information, a three-bedroom house in England and Wales, outside London, cost on average, about £10,000, including land at the end of 1974. An unsubsidised cost rent would need to be about £19·25 per week ; a local authority would charge an average unrebated rent of about £6 per week. The difference of about £13·00 would in the current financial year be met by way of housing subsidy of about £10·40 per week, on average, together with a contribution from the rates of about £2·60 per week on average.