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Local Authority Home Loan Interest Rates

Volume 990: debated on Thursday 7 August 1980

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Lords Amendment: No. 40, in page 32, line 11, leave out from "Notwithstanding" to "the" and insert

"anything contained in subsections (1) to (8) above, but subject to subsections (11) and (12) below,"

I beg to move, That this House doth agree with the Lords in the said amendment.

Amendment No. 40 provides for the Secretary of State to allow local authorities to charge low interest or waive interest for up to five years when they are granting a mortgage for the purchase of a house that is in need of repairs and improvements. The provision is aimed at encouraging what is known as homesteading. I understand that that concept was supported by the Opposition in another place when the issue was considered there. I think that the House will accept that it is highly desirable, especially in inner urban areas, that homesteading arrangements, which are often popular especially among young couples, should be encouraged. The amendment will achieve that purpose.

Amendment No. 41 enables the Secretary of State to approve individual schemes submitted by local authorities. If it appears appropriate, the Secretary of State may issue an order with the consent of the Treasury on the basis of which local authorities could proceed without the need for individual approval.

Question put and agreed to.

Lords amendment No. 41 agreed to.