HC Deb 18 April 1973 vol 855 cc472-3
6. Mr. Lamborn

asked the Secretary of State for the Environment what criteria he sets before allowing local authorities to sell council houses at 30 per cent. below market value.

The Under-Secretary of State for the Environment (Mr. Reginald Eyre)

I am prepared to authorise sales at up to 30 per cent. below unrestricted market value in cases where the local authority can show that there have been substantial rises in the market value of their houses. Sales on this basis have to be accompanied by resale conditions for a period of eight years and costs have to be covered.

Mr. Lamborn

Is the Under-Secretary aware that one of the criteria on which the Greater London Council approached the Minister's Department to have the percentage reduction increased to 30 per cent. was the difficulty of selling housing on certain estates? In view of the stress conditions of inner London, is it not scandalous that the pool of housing which produces 12,000 vacancies a year to deal with the problems of the area is being dissipated in this way?

Mr. Eyre

No. The hon. Gentleman should take account of the varying aspirations of people in housing matters. Local authorities should be prepared to sell to tenants who want to buy and are able to do so, and should at the same time build or otherwise provide accommodation to meet the needs of those needing houses to let.

Mr. Allason

Is my hon. Friend prepared to apply the same criteria in the case of new towns, where there may equally well be conditions in which a 30 per cent. discount would be highly suitable?

Mr. Eyre

The circumstances in new towns are rather different, and the requirement that houses should not be sold below cost does not allow much scope in the respect that my hon. Friend has raised.

Mr. Crosland

There is a blockage here. Does not the Under-Secretary agree that we are very concerned, not only with the total housing condition but with the supply of rented accommodation? Is he aware that the supply of private rented accommodation is continually declining and that both starts and completions of public rented accommodation are lower than they have been for 10 years? In those circumstances, not only to allow but, indeed, to encourage the sale of badly needed rented property is a disastrous policy.

Mr. Eyre

The difference I have with the right hon. Gentleman in this respect is that the tenant who wishes to buy is not normally prepared to live elsewhere. It therefore follows that one meets his aspirations by allowing him to acquire the family asset—the house he lives in.