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Home Loans

Volume 82: debated on Monday 8 July 1985

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asked the. Secretary of State for the Environment why the house price limits for the home loan scheme he announced on 28 June, at column 515, vary from the rate of increase in homes purchased by first time buyers; and if he will list the percentage increase in such homes and the limits for each region.

The home loan scheme's house price limits are set so that about two thirds of first-time purchasers could qualify. That was the criterion proposed by the right hon. Member for Bethnal Green and Stepney (Mr. Shore) on 20 February, 1978 at column 1032, when he was Secretary of State for the Environment. The increases required in order to meet this criterion differ from the increases in average prices paid by first-time buyers. The table below compares the "Homeloan" scheme's house price limits with the average price paid by first-time buyers in the first quarter of 1985; and the increase in the "Homeloan" price limits as compared with the increase in average prices paid by first-time buyers in the year ending in the first quarter of 1985. Following is the information.I regret that separate numbers for each region are not available.

asked the Secretary of State for the Environment what has been the cost each year of the operation of the Home Purchase Assistance and Housing Corporation Act 1978.

The net cost of the home purchase assistance —"Homeloan"—scheme comprises the amounts paid out in loans and bonuses, less the receipts from loans which have been repaid. The amounts are as follows:

£ million
1980–810·42
1981–823·86
1982–834·24
1983–842·48
1984–851·6

asked the Secretary of State for the Environment why the assistance of £110 cash bonus and £600 interest free loans available to first time home buyers under the Home Purchase and Housing Corporation Guarantee Act 1978 has not been increased since 1979.

We have given priority to other ways of helping people into home ownership, including particularly the right to buy and our low-cost home ownership initiative. Between 1 May 1979 and 31 May 1985, the number of dwellings in owner-occupation increased by 1·9 million.