asked the Minister for Local Government if he will state the contributory factors in the weekly rent of a local authority house costing £1,500 at 5 per cent. and repayable over 35 years due to (a) cost of site; (b) sitedevelopment; (c) cost of building materials; (d) cost of labour; (e) interest and (f) repayment of principal.
Ceisteanna—Questions. Oral Answers. - Rents of Local Authority Houses.
As the reply includes a tabular statement, I propose with your permission, a Cheann Comhairle, to have it circulated with the Official Report.
Following is the reply:—
It is not possible to apportion the rent of a house in the manner requested. The rent depends upon several factors in addition to capital expenditure and repayment terms. These include the valuation of the house, the current level of rates, maintenance and administration expenses and the amounts of the State and local contributions.
An average apportionment of the all-in cost of a house costing £1,500 over the items at (a) to (d) in the question is shown in the following table. The table also includes an apportionment of the weekly sum, calculated on the annuity basis, required to repay the capital expenditure on the terms mentioned by the Deputy. The principal and interest content of these amounts vary over the period of the loan.
|
Item |
Cost |
Apportionment of annuity on weekly basis |
|
|
£ |
s. |
d. |
|
|
(a) Site |
30 |
8.4 |
|
|
(b) Development |
170 |
3 |
11.8 |
|
(c) Materials |
800 |
18 |
8.5 |
|
(d) Labour |
500 |
11 |
8.3 |
|
TOTAL |
£1,500 |
35 |
1 |