§ 7. Mr. McMasterTo ask the Secretary of State for the Environment if he has any plans to meet the chairman of the Building Societies Association to discuss the level of house repossessions.
§ Sir George YoungI have already discussed with the Building Societies Association and the Council of Mortgage Lenders ways in which repossession can be avoided, and will be meeting the CML again tomorrow. My right hon. Friend the Secretary of State will also be meeting the CML.
§ Mr. McMasterWhen the Minister next meets the chairman of the Building Societies Association, will he apologise to him and, more importantly, to the millions who are struggling to pay their mortgages as a result of his policy of high interest rates and mortgage misery? What does he intend to do to help the people whom he encouraged to buy their homes, and who are now struggling to pay their mortgages? How will he help those whose homes are being repossessed? What will he do to help those whom he set up and whom he has now knocked down?
§ Sir George YoungI am sure that all the people to whom the hon. Gentleman has referred will welcome the fall in interest rates, which will reduce the pressure on budgets. We should keep the matter in perspective—98.7 per cent. of those with mortgages are not six months or more behind with their payments.
§ Mr. HawkinsHow would the Government react to building societies' participating in schemes to recycle repossessed properties into the private rented sector, making them available for letting to priority groups?
§ Sir George YoungThe Government would welcome any such initiative by building societies. I understand that one or two are considering taking such properties into their ownership and then putting them out to rent, perhaps to those in need.
§ Mr. SoleyI do not think that the Minister intended to mislead the House, but the drop in interest rates will make no difference to most mortgage payers, as the Halifax building society itself pointed out recently.
Mortgage repossession is the fastest-growing cause of homelessness in families. Will the Minister join me in pursuing an option advanced by the Council of Mortgage Lenders, together with certain housing associations and local authorities—the development of a mortgage rescue package designed to stop the dream of home ownership from turning into the nightmare of bed-and-breakfast accommodation paid for by the poll tax payer?
§ Sir George YoungI think that most mortgage payers would take a slightly different view of the fall in interest rates from that advocated by the hon. Gentleman. His point about homelessness should also be seen in perspective: repossessions account for about 10 per cent. of homelessness—they are not a significant factor.
As I have said, I will be meeting the Council of Mortgage Lenders tomorrow, and talking through with it some of its proposals to help families to avoid going into bed-and-breakfast accommodation after their homes have been repossessed.
§ Mr. LathamI have been a vice-president of the Building Societies Association for 10 years. When my hon. Friend meets the societies tomorrow, will he point out that some of them have been rather slow in bringing down their interest rates following the fall in wider interest rates? Is it not time that some of them responded rather more quickly to the needs of their mortgage payers?
§ Sir George YoungI shall take a copy of today's Hansard to the meeting and show the societies my hon. Friend's question.