asked the Minister for Local Government and Public Health if he will state under what terms and from what sources loans are available, at the present time, for persons wishing to make use of powers under the Small Dwellings Acquisition Acts to enable them to build houses.
Written Answers. - Loans for House Building.
Local authorities have power to borrow from the Local Loans Fund in order to make advances to persons to build houses for their own occupation under the Small Dwelling Acts. The present rate of interest on loans from the fund for this purpose is 2½ per cent. and local authorities may charge borrowers not more than ½ per cent. over this rate. The market value of the house must not exceed £1,000, and the maximum advance that may be made is 90 per cent. of the market value. The maximum repayment period is 50 years but does not usually exceed 25 years. Local authorities have also power to obtain loans from other sources for the purposes of the Acts.