asked the Secretary of State for the Environment whether, in view of the cut-back in the amount of money available to local authorities for advance to house purchases, he has any plans to ensure that building societies assist the type of applicant normally applying for local authority house purchase loans; and if he will make a statement.

My Department's regional offices are collecting details of local authorities' lending policies in order to identify the areas in which mortgage finance is most needed. Discussions will be arranged between local authorities and the building societies as soon as this information is available. My right hon. Friend explained in his answer to my hon. Friend the Member for Battersea, South (Mr. Perry) on 9th June—[Vol. 893, c. 39]—that building society participation would be made available within their normal lending terms.