HC Deb 28 March 1990 vol 170 cc484-5
14. Mr. Knox

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

Lord James Douglas-Hamilton

Since April 1979, over 184,500 public sector houses in Scotland have been sold to sitting tenants. Included in that figure are over 132,000 sales by local authorities.

Mr. Knox

What percentage of the council house stock in Scotland has been sold to sitting tenants? If the figure is still significantly below that in England, what further steps does my right hon. and learned Friend the Secretary of State intend to take to increase the number of sales in Scotland?

Lord James Douglas-Hamilton

The figure is now 18.6 per cent., and south of the border it is 22.2 per cent. The gap has narrowed. On the previous occasion that I reported to my hon. Friend, it had narrowed by 0.1 per cent., and it has closed by at least as much again. We have taken steps, by way of a right-to-buy publicity campaign, to ensure that tenants know of changes in the law. It should not be forgotten that the average rent in Scotland is approximately £20 and the average weekly cost of a mortgage is approximately £23. That is within the reach of thousands of families throughout Scotland.

Mr. Strang

Does the Minister appreciate that, notwithstanding the discounts on these council houses, many people in Scotland who bought their houses are now in arrears with building societies because they cannot afford the high interest rates? Does he appreciate that the Government's policy of cutting public support for council housing, and thus forcing rents up, led many people to buy houses when they would probably have been better advised not to do so? When will the Government reconsider their whole approach to this issue? When will they start to provide decent support for public sector housing? When will they allow local authorities to avoid increasing rents excessively and start building some of the council houses that are needed?

Lord James Douglas-Hamilton

Obviously, in the case of the public sector housing stock, the level of rents is determined by what is considered to be an appropriate level of management and maintenance. Public sector sales—sales to sitting tenants—greatly benefit the remainder of the public sector housing stock. Fewer than 0.1 per cent. of houses sold to tenants are being repossessed. The overall number is very small. Also, building societies are prepared to discuss with those concerned suitable phasing arrangements to enable debts to be paid.

Mrs. Gorman

Can my hon. Friend tell me what progress is being made in respect of the rents-into-mortgages schemes in Scotland? This is a terrific idea, which I hope can be extrapolated to the new town corporation houses in my area. Changing a rent into a mortgage is a very simple idea.

Lord James Douglas-Hamilton

I was present when the Prime Minister handed over the first deed of contract to a remedial teacher in Uphall, who was gaining her own house under this scheme. There have been more than 500 expressions of interest, and we expect the scheme to be highly successful. Of course, we shall review the success of the operation shortly.