House Purchase (Local Authority Advances)

Oral Answers to Questions — Wales – in the House of Commons at 12:00 am on 21st February 1972.

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Photo of Sir Raymond Gower Sir Raymond Gower , Barry 12:00 am, 21st February 1972

asked the Secretary of State for Wales how many local authorities in Wales now grant mortgage advances for house purchase; how many refuse all applications for such mortgage advances; and what action he will take to encourage these local authorities to resume such advances.

Photo of Mr David Gibson-Watt Mr David Gibson-Watt , Hereford

One hundred and fifty housing authorities and four county councils in Wales are normally prepared to make home loans. In only nine housing authority areas are such advances not generally available. All housing authorities which have not taken such action have already been asked to consider doing so.

Photo of Sir Raymond Gower Sir Raymond Gower , Barry

Can the Minister confirm that in every case local authorities which perform this function can cover all their administrative expenses and are permitted a margin of, say, ½ per cent.? Does he expect that all local authorities will shortly be granting mortgages?

Photo of Mr David Gibson-Watt Mr David Gibson-Watt , Hereford

As my hon. Friend knows, a number of authorities suspended their schemes when funds were restricted by the quota system imposed by the last Administration. My hon. Friend will be glad to know that Cardiff R.D.C., which lends for improvements and repairs but is not at present implementing the scheme which has been adopted for home loans, is in process of reviewing its policy.