HOUSING PROBLEM

Evening Post, Volume CVI, Issue 89, 12 October 1923, Page 7

HOUSING PROBLEM

TRANSFER OF HOMES

IS THE 95 PER CENT SCHEME EFFECTIVE!

What is known as the Government "-9E Per cent, scheme" of advances to homei. builders or home-seekers is at present attracting a great deal of attention from those who desire to acquire homes of their own as a means of escape from. Hats, the sharing of houses, and the rental system. The question naturally arises as to what extent the Government, scheme is relieving the house shortage,' which is at present causing,-- and has for some time past occasioned, so much' worry and suffering to large numbers of, people. A statement has been made by. the Department as to what is being done to relieve the existing deplorable situation, but from that statement it is very evident, a correspondent points out, that more money is being advanced for the pur, chase of houses already erected than for the purpose of erecting new homes; the latter item being £500,000, and the former £600,000. That represents £100.000, more for the purchase of homes already in existence. The occupants of iheso homes will have to vacate the premises and find others. This simply means a. change-over. The erection of new homes,' it is pointed out to "The Post," is the only way in which the house-shortage problem can be solved. To advance' money for the purchase of a home already erected is only to put the purchaser in, and turn the present occupant out; _ In addition to this aspect of the question, it should be borne in mind that certain restrictions are imposed. For. the purposes of these advances a worker is defined as a person of either sex engaged in manual or cle'ical work andwho is not in receipt of an annual income exceeding £300 (increased by £25. for each child or other person dependent on him), and who is not the owner of any land other than that offered as security. The extent of the advance which such a borrower may secure is up to 95 per cent, of the total value of the security, and not more than £1250 may be granted to any one borrower. No advance shall be made to tfny applicants who do not take up permanent residence on. the property. Loans aregranted only on the instalment system.' for periods not exceeding 36 years, mr terest being at the rate of 5 per cent.,reducible to 4£ per cent.-when payment is made not later than 14 days after dv» date.