HOUSING IN BRITAIN

Dominion, Volume 12, Issue 219, 10 June 1919, Page 6

HOUSING IN BRITAIN

THE GOVERNMENT'S SCHEME. Tho -British Government's scheme for providing additional houses for workers takes the form of a subsidy of, roughly, one-third of the cost. Under schome, which has been mentioned in. the cable messages, co-operative societies, employers, and Labour unions are invited to undertake building schemes. The Local Government Board has explained that a "public utility socioty" for housing may bo formed by any seven or more persons. Tho shares held by any member must not exceed .£2OO, but that limit does not apply to loan stock. The interest or dividend must not exceed G per cent. When the scheme is approved by the Local Government Board the Treasury will, lend monoy up to a limit of three-fourths of tho essentia! outgoings; but borrowing from other sources is preferred. The State will also make a subsidy enual to M por cent, of (he charges fev interest and repayment of principal of three-fourths of the total capital. Suppose the capital cost of an approved scheme is .£4(1.00# and that the society has borrowed the maximum (that is. l .030,000) frem the Government. Taking the rato of interest aI. 5} per cent, and allowing for the repayment of capital. the annual payment for loan charge;: to be made by tho society will be nnpioximately .C 1770 per annum. The Government subsidy will then be 40 per cent, of this (that is, ,£7OB a year), leaving the balance and the charges on tho privately subscribed capital to bo inof out of the rents. This aasistaneo is confined to housing schemes carried out ■within two years.