§ Mr. Roy Hughes
asked the Minister of Housing and Local Government what has been the effect on the level of home building in the private sector following the decision to raise the mortgage interest rate to 8½ per cent.
§ Mr. MacColl
Despite the higher rates, demand for mortgages continues to outstrip supply. There has been a sharp improvement in net inflows to the building societies since the rates were raised, and these should be reflected in better private housebuilding performance.