With your permission, a Cheann Comhairle, I propose to take Questions Nos. 7 and 8 together.
I am aware that building societies are not, in general, accepting loan applications at present. I fully appreciate the problems that this situation entails for house purchasers, particularly those who have placed deposits on houses or who have had recourse to bridging finance and, indeed, for the house building industry generally. I have, therefore, had the situation under continuous review. To improve the flow of funds to the societies, the Government introduced on the 22nd May, 1973, a temporary subvention to enable them to offer a higher rate of interest on investment without increasing their mortgage rates. The Government also increased temporarily the existing limit on investment for composite tax purposes from £5,000 to £15,000.
Returns forwarded to me by the principal societies indicate that the subvention has been effective in enabling them to attract additional funds. In the circumstances, I have asked them to consider urgently the possibility of an early resumption of loan approvals. I hope that they will respond favourably to this request and that the loans situation will, as a result, improve in the near future.
Deputies will be aware of the increases in the maximum loan and income limits applicable to local authority house purchase loans which I announced on the 25th May last. The maximum loan which local authorities may advance has been increased from £3,800 and £3,400 to £4,500 in all areas. The qualifying yearly income limit for house purchase loans has been increased from £1,800 to £2,000.