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Local Authorities (Housing Revenue Accounts)

Volume 894: debated on Tuesday 24 June 1975

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asked the Secretary of State for the Environment what would be the average amount of Government subsidy to the housing revenue account of a local authority in each of the years during which subsidy is payable under present legislation in respect of a dwelling costing £10,000 for land and buildings.

The amount of subsidy will depend upon the amount of loan charges—interest plus repayments of principal—related to admissible capital costs which fall on the authority's housing revenue account in any year.For example, with an average loans fund interest rate of 10 per cent. subsidy for the year would be of the order of £675–£680. There could be minor variations in the amount of subsidy for any year for identical dwellings at the same rate of interest depending upon the method adopted by the authorities con cerned in repaying the principal.