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Local Authority Mortgages

Volume 928: debated on Monday 14 March 1977

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asked the Secretary of State for Scotland (1) what mortgage allocations will be given to Scottish local authorities in the years 1977–78; and what part he expects building societies to play, in assisting local authorities to provide funds for house purchase and improvements;(2) what is the total amount of funds given in Scotland under the building societies commercial indemnity scheme to date;(3) what allocation will be given to Scottish local authorities to allow them to maintain mortgage lending;

(4) what level of building society funds it has been agreed will be made available to Scottish local authorities in the coming year in order to allow them to continue to finance mortgage lending;

(5) what consultations he has had with building societies regarding the level of local authority loans for house purchase and improvement in Scotland.

The total available to local authorities in Scotland during 1977–78 for lending to individuals for house purchase and improvement is £14 million. Allocations to individual authorities for 1977–78 will be intimated to them very shortly. To supplement these funds the building societies have agreed, subject to their levels of net receipts, to make available £10·5 million in Scotland. My Department is to discuss soon with both local authorities and building societies how all the funds available can be best utilised. It is open to a building society in certain circumstances to require a borrower to take out an indemnity insurance; there is no specific scheme and no public funds are involved.