asked the Minister for Local Government whether he is aware of the widespread hardship caused to young married couples who are unable to purchase their own house because of increasing deposits, high interest rates and the difficulty of raising loans; whether his Department have given any consideration to this problem; and whether he will discuss this matter with building societies and other interested bodies.
Ceisteanna—Questions. Oral Answers. - House Purchase Difficulties.
18.
I appreciate as much as anyone the difficulties of young persons setting out to purchase their homes. The problems referred to by the Deputy are kept under constant review by my Department and, despite the difficulties involved, appropriate action is taken as required.
Discussions are held from time to time with building societies and other agencies.
I would however draw the Deputy's attention to the fact that the total number of new house grants allocated by my Department in 1967-68 was an alltime record. This shows that despite the difficulties more persons than ever before are succeeding in buying their own homes.
In regard to deposits and what the Deputy terms "the difficulty of raising loans", I would refer him to my recent announcement of increases of £200 or £300 according to area, in limits applicable to local authority house purchase loans. All local authorities and, so far as I am aware, the principal commercial agencies are at present accepting loan application for new houses.
In so far as interest rates are concerned, the rate of 7½ per cent currently charged by local authorities generally for house purchase loans represents a reduction of ¾ per cent on the rate charged by authorities during the period from November, 1966 to June, 1967.