asked the Minister for Local Government if he is aware of the difficulties at present experienced by would-be purchasers of private dwellings in obtaining mortgage loans to enable them to purchase; and if he will take steps as a matter of urgency to overcome those difficulties.
Ceisteanna—Questions. Oral Answers. - House Purchase Loans.
6.
In discussions with representatives of leading building societies earlier this year, I was assured that the rate of applications as well as the inflow of capital to the societies' funds was unprecedented, that most societies were lending more than last year, that they expected to continue to do so and that current applications were being dealt with normally. Since then I have been keeping the matter under review in conjunction with general policy regarding house purchase loans by local authorities and I am having recent press reports investigated.
Is the Minister aware that persons with an income of £1,050 per year are now in the situation that they cannot get a loan for a house from the Local Loans Fund and cannot get a loan from a building society?
This I am not aware of.
This is true.
I can only take the Deputy's word for it until I find out what the situation is.
Is the Minister aware that five building societies have indicated that they will not accept applications for housing loans for three months and that others have indicated that they will not advance any money for the purchase of business premises until September of 1965? Will the Minister say what steps he proposes to take to ameliorate the position of people who wish to purchase houses?
I am not aware of the situation being as the Deputy suggests it is, although I am aware from newspaper reports that certain societies are not taking any further applications for loans until they have cleared up the present backlog of applications. I am not aware either that this is an unusual situation or that it is in any way startling.
Is the Minister aware that several builders have suspended operations because they cannot close transactions which were entered into four, five or six months ago because the people who were able to pay the deposits at that time are now unable to obtain their money from the building societies?
I am not aware that what the Deputy says is true. I have seen certain reports in newspapers but until I know something more about these reports, I am not prepared to accept that the situation is as the Deputy suggests. Neither am I prepared to accept the Deputy's further suggestion that this situation has been arising over a period of three months. The building societies lent more money for building in the past year than they did at any other time in their history. They advanced over £12 million in the past year. That is far above the amount advanced in the previous year and still more than that advanced in the year 1962-63.
Does the Minister accept that the building societies must have advanced a great deal more money than they did previously because of the extreme inflation occurring in house property? Even though they are advancing much more money, fewer people are able to purchase houses because of the inflated prices.
An increase from £7½ million to over £12 million can hardly be said to have been caused by an increase in the cost of housing.
It is extraordinary that the Minister should tell us that he does not know what the situation is. A couple of threepenny telephone calls would get him all the information he wants.
The price of a telephone call is 4d. If the Deputy consults Deputy Ryan, he will find that according to his earlier statement, five building societies are doing one thing and a number of others doing something else to obviously there must be more than five building societies.