In accordance with recommendation of the Sub-Committee, the Bank Committee (at a meeting on February 9th 1923) passed the following resolution, confirming their earlier decision regarding the Bank's representation on the Joint (Sales etc of Houses) Sub-Committee:

RESOLVED:- That the Chairman and Councillor Gelling (and, in the absence of either of these members, Alderman Lovsey) be authorised, as far as this Committee is concerned and in conjunction with the Finance and Estates Committees' representatives, to deal with the scheme approved by the Council on the 9th January in regard to the sale of houses under the 1922 scheme and the making of advances to persons to build houses, reporting to this Committee from time to time.

When the Bank Committee met on May 29th 1923, a report of the Joint (Sale etc of Houses) Sub-Committee was received. This report included details of the first 1,363 houses erected under the 1922 Scheme; information on the working of progressive mortgages; and a proposed plan for utilising the Government's subsidy:

Lease of Houses under 1922 Scheme, and Progressive Mortgage Advances.

The Joint Sub-Committee report that the Town Clerk has submitted forms of lease and mortgage under the above Scheme and, subject to a few suggestions, these have been approved.

Sale of Houses, 1922 Scheme.

A pamphlet has been prepared and approved relating to the sale of houses erected under the 1922 Scheme. The pamphlet is accompanied by a schedule of houses which are on sale and this schedule will be amended from time to time as may be necessary.

The City Surveyor has submitted a report giving details and total approximately estimated cost of various houses erected, or being erected, under this Scheme as follows, and figures will be included in the schedule based on this list:

Ground Rents.

The Joint Sub-Committee originally intended that ground rents should be fixed generally on an average of £3. 10. 0. per house, but this figure will be adjusted as may be necessary in view of the cost of roadworks and site referred to above and the general conditions affecting any particular houses.

New Housing Bill.

The Joint Sub-Committee have had under consideration the effect of the new Housing Bill upon the sale of houses and whether the benefit of the Government subsidy should be passed to the purchaser of a house, and, if granted, whether it would prejudice the sale of houses erected by private enterprise. Owing to the uncertainty created, the Joint Sub-Committee have hitherto delayed fixing any definite policy as to the application of the subsidy, but in view of the fact that nearly 700 applications have been received to purchase houses, and that houses under the new scheme are now nearing completion, they consider that definite steps should now be taken in regard to the sale of houses, and they propose to proceed accordingly, subject to a proviso that purchasers may later be granted the benefit of any Government or Corporation subsidy which the City Council may authorise in respect of any such houses sold. Prices will be based on the figures of the City Surveyor quoted above and ground rents will be adjusted according to the particular conditions affecting each house.

The Joint Sub-Committee recommend that the selection of houses which are to be sold and the selection of applicants for the purchase of such houses be referred to the Estates Committee to deal with and that that Committee give instructions to the necessary forms of Lease and Mortgage.

Advances on Progressive Mortgage.

The following resolution has been received from the Finance Committee:

RESOLVED:

(a) That the sum of £10,000 be set aside for the scheme of the Joint (Sale of Houses) Sub-Committee for advances to builders of houses by way of progressive mortgage.

(b) That the rate of interest to be charged on the advances to Builders on progressive mortgage be fixed at 4% on the understanding that this rate will be subject to revision if found necessary at a later date.

(c) That the arrangements set out above be regarded as provisional only, to enable the Joint (Sale of Houses) Sub-Committee to proceed with their scheme, and that subject thereto the whole question of the ultimate sum to be set aside for the purposes of these progressive mortgages and all other matters in connection therewith be referred for the consideration of the Priority of Expenditure Sub-Committee in relation to other capital requirements of the Council.

The Joint Sub-Committee have had under consideration the question of making advances on progressive mortgage and have had before them a report of the City Surveyor thereon, prepared after consultation with Mr Cox, and that the following arrangements have been approved:

That the advances to be made be granted at definite stages of the building progress and consist of a percentage of the whole sum it is proposed to advance in connection with each house. The following are the stages at which advances should be made and the percentages of the whole sum to be lent on mortgage at these stages:

Arrangements have been made for the City Surveyor to issue the certificates that the houses have reached the stages in question, whereupon the appropriate advances will be made. It is felt that any other method would mean over-lapping and extra cost as the building surveyors are engaged on inspecting the houses during the whole course of their construction.

Application of Proposed Subsidy.

The Sub-Committee have given careful attention to the question of the application of the subsidy of £6 per annum for 20 years, the proposal embodied in the Housing Bill now before the House of Commons.

They recommend to the Finance Committee for their consideration the following Scheme:

In order to induce private enterprise to undertake the erection of small houses, both of parlour-type and non-parlour type, it is necessary that there should be a market for the sale of the house when completed. If a substantial loan towards the purchase price of houses could be obtained, a large number of people who have a little capital would no doubt become buyers.

The Scheme suggested is that the Corporation should advance free of interest a sum of (say) £300, repayable by monthly instalments over twenty years. The interest at 4% on this amount would in the first year amount to £12, half of which would be provided by the Government Subsidy, the other half by the Corporation. It is proposed that the borrower should repay the loan at the rate of £15 per annum which would decrease the Corporation's contribution in respect of interest by 12/- per annum cumulative, and at the end of the eleventh year the interest would be covered by the Subsidy from the Government. After that, the Corporation would recoup themselves to a certain extent, as each year the interest would be less than the amount received from the Government as Subsidy.

If such a Scheme could be put into operation, a person possessed of (say) £110 would be able to buy a leasehold parlour-type house, or if he had only £50, a leasehold non-parlour type house.

The borrower would have to pay each year in addition to the £15 in respect of the repayment of the loan, the Rates on the property, the Ground Rent and the amount required for necessary repairs.

Pamphlet, Progressive Mortgage.

The Joint Sub-Committee have in course of preparation a pamphlet relating to the making of advances on progressive mortgage to enable persons to build or purchase houses, but pending settlement of various matters referred to above they are deferring further action in regard to the pamphlet.

After receiving and approving the above report, the Bank Committee resolved:

That in connection with the sale of houses under the 1922 Scheme any cases of a special nature be referred to the Finance and Estates Committees with a view to additional amounts being advanced or a longer period granted for repayment than this Committee have power to make, any advances to be secured in such a manner as the Finance and Estates Committees may deem advisable and to be repayable with interest by such instalments as they may decide.