Cement costs and assistance for new home buyers
Faulkner challenged the estimated £110–£120 increase in house-building costs from higher cement prices and sought help for buyers; the Minister defended his estimate and pointed to the low-rise mortgage scheme. Leonard asked for clearer guidance on that scheme for local authorities, and the Minister offered to send officials to explain it.
asked the Minister for Local Government the steps he proposes to take to assist people buying or building a new house in view of the recent increase in the price of cement.
Comment on this
I understand that the recent increase in the price of cement will result in an average increase of between £110 and £120 in the building cost of a new house. This represents an increase of a little over one per cent in the average price of a new house. Since March, 1973, the measures taken by the Government have ensured that, despite price increases, the number of new houses which it is estimated will be completed during the four-year period ending in March next will be over 100,000 compared with 66,983 in the previous four years.
It would be foolish to believe that price increases can be totally avoided especially as so often the increases are in greater or lesser degree generated by international currency changes, oil price adjustments, and so on. What is important is that they be kept under control. The operation of control by my Department on the prices of granttype houses in schemes of four or more provided for sale continues to have a moderating effect on house price increases.
I might add that the low-rise mortgage scheme which I introduced recently is a further measure of assistance to people building houses and is evidence of the fact that the Government are keeping the needs of the housing programme under constant review.
Comment on this
Is the Minister aware that the best estimates I can get in relation to the increase is that it will be about £250 on a £10,000 house? Would he agree this is an enormous increase for house purchasers many of whom are already under considerable financial strain? In those circumstances does he not think he might come to their assistance?
Comment on this
I have given the figures my officials have worked out, having got the necessary information, as being an increase of between £110 and £120 per house. The price of cement has had to go up for the reasons I mentioned. The new low-rise mortgage scheme will help very considerably people of modest means. It is not always the person with modest means who builds a house. Usually it is the other way around.
Comment on this
Is the Minister aware that the terms of the low-rise mortgage scheme recently introduced are very vague? Does he propose to clarify the scheme for the local authorities? We discussed it at a recent meeting of Monaghan County Council and the officials did not seem to be familiar with the point we wanted clarified.
Comment on this
Any clarification needed will be provided. I was under the impression that all local authority officials would be aware of the terms of the scheme. As far as I know, most elected representatives on local authorities are aware of its terms. For one reason or another, some local authorities have not adopted the scheme. If they do not adopt it, they are not indicating that they are anxious to operate it.
Comment on this
Is the Minister aware that counties which adopted the scheme had to ask the Department to send on an official to clarify it?