asked the Minister for Local Government whether he is aware that in making advances under the Housing Acts local authorities only give loans in accordance with the means of applicants and that accordingly poorer applicants never obtain adequate assistance to cover the cost of building their houses; and, if so, whether he will consider introducing proposals for legislation to ensure that advances are made up to the full market value of the house in respect of which an advance is sought.
Ceisteanna—Questions. Oral Answers. - Local Authorities and Housing Acts.
I am aware that local authorities when considering advances under the Small Dwellings Acquisition Acts take into account the capacity of each applicant to repay the amount which the local authority have been advised can be advanced on the basis of a percentage of the market value of the house. Very recently a county council expressed the view that applicants should be in a position to make a minimum deposit of £100 out of their own resources. There is evidence, however, that some local authorities require deposits from applicants which take into account personal resources or means and that the better off applicants, therefore, would provide higher deposits than those required from persons with moderate means.
The free grants up to £275 made available by the State for the erection of houses by individuals for their own occupation provide a useful supplement to the resources of persons building their houses.
So far as I am aware there is no general demand by local authorities to be empowered by legislation to make advances up to the full market value of a house.
Does the Minister appreciate that by reason of the present practice of council authorities the poorer applicant does not get an advance even remotely adequate to enable him to build a house? Will the Minister consider introducing proposals for legislation to enable the market value of a house, when built, to be secured?
The Deputy will appreciate that the local authorities find it necessary to have certain safeguards protecting themselves in this respect. The market value will have to be carefully examined.