HOUSING IN BRITAIN.

Taranaki Herald, Volume LXVII, Issue 16462, 14 June 1919, Page 11

HOUSING IN BRITAIN.

THE GOVERNMENT’S SCHEME. Tile British Government’s scheme for providing additional houses lor workers takes the form of a subsidy of. roughly, one-third of the cost. Linder this scheme, which lias been mentioned in the cable messages, co-operative societies, employers, and Labour unions are invited to undertake building schemes. The Local Government Board lias explained that a “public utility society” for housing may be formed by any seven or more persons. The shares held by any member must not exceed £2OO, but that limit docs not apply to loan stock. The interest or dividend must not exceed 6 per cent. When the scheme is approved by the Local Government Board the Treasury will lend money up to a limit of threefourths of the essential outings; but borrowing from oilier sources is prefer red. Tbo State will also make a subsidy equal to ‘lO per cent, of the charges for interest and repayment of principal of three-fourths of the total capital. Suppose the capital cost of an approved scheme is £40,000, and that the society' has borrowed the maximum (that is. £30,000) from the Government. Taking the rate of interest at oj per cent, and allowing for the repayment of capital, the annual payment for loan charges to ho made by the society will be approximately £1770 per annum. The Government subsidy will then bo 10 per cent of this (this is, £7OB a year), leaving the balance and the charges on the privately subscribed capital to be mot out of tbo rents. This assistance is confined to bousing schemes carried out within two years.