asked the Minister for the Environment if he has recently increased the rate of interest on loans to local authorities from the Local Loans Fund to finance house purchase schemes to tenants; if so, why, when and the extent of the increase in weekly purchase payments likely to be caused by this change.
Written Answers. - Local Authorities' Loan Interest.
205.
The purchase of local authority houses by tenants is not financed by way of loans to local authorities from the Local Loans Fund. Tenants may purchase outright or by weekly instalments over a period of up to 30 years at the rate of interest applicable to local authority house purchase loans current at the date of commencement of the tenant purchase scheme.
Under the previous tenant purchase scheme the rate of interest was 11½ per cent. The rate of interest applicable to the current scheme, which commenced on 1 January 1979 is 12½ per cent.
The increase in the weekly instalments resulting from the increased interest rate will amount to 15p per £1,000 over a 20-year repayment period.