asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the price of a three-bedroom semidetached house in terms of the number of years' average earnings for an adult male in London and in the south-east in 1957, 1967, 1987 and 1986 together with the annual interest payable after tax on the purchase price, assuming a 90 per cent. mortgage and maximum relief.
Average prices of three-bedroom semi-detached houses are not available. The table gives average house prices for all properties bought with building socieity mortgages in 1977 and 1986: figures for the earlier years requested are not available. Because of the large number of commuters in the south-east, it is not possible to provide separate estimates for London and the rest of the south-east of house prices related to the earnings in each locality.
London and the South East
Average house price1 £
Ratio of house price to earnings2
Annual net interest on 90 per cent. mortgage3£
1 Source: Department of Environment's survey of building society mortgages at completion stage.
2 Average gross weekly pay of full time males on adult rates whose pay was not affected by absence, in April each year; source: New Earnings Survey.
3 Assuming 11 per cent, interest rate in 1977 with tax relief at 34 per cent. and 11·5 per cent, interest rate in 1986 with tax relief at 29 per cent, on the first £30,000.