HC Deb 11 February 1985 vol 73 cc9-10
10. Mr. Knox

asked the Secretary of State for Wales how many council houses have been sold to sitting tenants in Wales since May 1979.

Mr. Wyn Roberts

A total of 39,432 council dwellings were sold to sitting tenants in Wales between May 1979 and 30 September 1984. In addition, 2,292 dwellings were sold by the Cwmbran Development Corporation and Mid-Wales Development.

Mr. Knox

How do those figures relate to right-to-buy applications?

Mr. Roberts

There were more than 60,000 right-to-buy applications to Welsh local authorities. In addition, more than 3,000 applications were received from tenants of Mid-Wales Development and the Cwmbran Development Corporation. At the end of September 1984, sales represented about 59 per cent. of right-to-buy applications and about 88 per cent. of live applications. Offer notices have been issued to about 88 per cent. of applicants.

Mr. Anderson

The Minister, in response to an earlier question, ingenuously said that housing expenditure this year was the highest since 1978–79, thus comparing expenditure with years of Conservative control only. Does he not feel some shame at the fact that sales of council houses have gone ahead at a time when house building in both the public and private sectors has slumped terribly under this Government and when the property that is being sold is not being replaced?

Mr. Roberts

The hon. Gentleman knows only too well that sales of council houses to sitting tenants do not decrease the housing stock. The secure tenants who have bought would have remained as tenants had they not become owners. There is no doubt that sales of council houses have resulted in considerable receipts for local authorities, and those receipts have been spent on improving older properties. The Government's policy has been extremely successful both in increasing home ownership and in improving the housing stock.

Mr. Gwilym Jones

Is my hon. Friend satisfied that the principles of the right-to-buy legislation are being extended fairly to all tenants of houses owned by county councils in Wales?

Mr. Roberts

My hon. Friend will know that the Housing and Building Control Act 1984 extended the right to buy to groups of tenants who did not previously qualify, including some county council tenants. The Act increased the maximum discount to 60 per cent. and introduced the right to buy on a shared ownership basis. I am satisfied with the implementation of the Act.

Mr. Alex Carlile

Does the Minister agree that one result of the sale of council houses is that district councils have been supplying large sums of money by way of mortgages? If so, will he explain why the Welsh Office is dictating to district councils what they can do with the mortgages? As the mortgages are the assets of the district councils, they should be allowed to use them as such.

Mr. Roberts

Local authorities have been lending money for the purchase of council houses. That is a right that tenants have under the right-to-buy legislation. It is entirely for the local authorities to decide what they will do with the mortgage books. If they choose, as many have, to sell the books to the private sector, I see no objection to that.