Housing Co-ownership Schemes (Hansard, 17 February 1988)

§ 13. Mr. Stern
To ask the Secretary of State for the Environment what steps he is taking to encourage the growth of housing co-ownership schemes.

§ Mr. Waldegrave
Co-ownership schemes can normally proceed without direct Government assistance, although my right hon. Friend is responsible for granting co-ownership societies entitlement to various tax reliefs if their rules meet the requirements of section 341 of the Income and Corporation Taxes Act 1970.

§ Mr. Stern
I am grateful for that reply. Does my hon. Friend agree that co-ownership schemes often provide the only route by which young couples on low incomes can achieve their desired form of housing—house purchase —especially in areas such as Bristol, where house prices have recently risen sharply? Will he do all that he can to encourage the provision of those schemes so that young couples have a chance to buy their own homes?

§ Mr. Waldegrave
I quite agree with my hon. Friend. A problem to do with a company which promotes such schemes and which is based in my constituency in Bristol has recently emerged. It has written to me about a technical problem to do with tax and we are trying to sort that out as quickly as we can.

§ Mr. Simon Hughes
Will the Minister consider amending the present proposals in the Housing Bill to ensure that before any private or other landlords can make a bid for council blocks, streets or estates, tenants are given the opportunity of setting up a co-operative organisation to buy those properties for themselves, or for themselves with others?

§ Mr. Waldegrave
It will be open to tenants to do that, and I suspect that in many cases tenants will want to bring forward such schemes. When the Bill is passed, and following the publicity about what the proposals mean, which we shall ensure is put out, I hope that many tenants will come forward with such proposals.