HC Deb 06 November 1991 vol 198 cc442-3
12. Mr. Moate

To ask the Secretary of State for the Environment how many local authorities have now transferred their housing stock to housing associations; and what steps he is taking to encourage such transfers.

Mr. Yeo

During the past two years, 16 local authorities have transferred their stock of more than 76,000 properties to housing associations, with the approval of their tenants. Two more proposed tranfers, at Bromley and at Tunbridge Wells, have been supported by tenant ballots and many more local authorities are known to be considering this option.

Mr. Moate

Is my hon. Friend aware that in my constituency the borough of Swale has transferred its whole housing stock to the Swale housing association, involving £55 million of assets? With all-party co-operation, the transfer is working extremely well and there is a high degree of tenant involvement. Does my hon. Friend agree that we should look forward to the time, very soon, when all local authorities arrange such transfers and generally move out of direct housing management?

Mr. Yeo

My hon. Friend rightly draws attention to the enormous benefits that accrue from such large-scale voluntary transfers. There are benefits to the tenants in the form of improved stock condition, better repair services and guarantees on rents. The research that we have carried out on the early transfers shows that tenants feel that their landlords are taking a closer interest in them. If only the Labour party was not so slavish in its attachment to the out-of-date idea of councils as monopoly landlords, tenants in Labour-controlled local authorities might also be able to enjoy those benefits.

Mr. Steinberg

Does the Minister agree that the transfer of council houses to housing associations will not solve the housing crisis? My district council, Durham City, has sold 3,000 houses under the right-to-buy scheme and we have 4,000 people on the waiting list. When will the Government lose their dogmatic policy and allow councils to build new houses so that people from those lists can be housed? So many people want rented accommodation provided by local authorities.

Mr. Yeo

It is clear that it is the Labour party which has dogmatic policies, as it sees the local authority as the only answer to housing provision and it refuses to learn the lesson of Southwark, of Lambeth and of Hackney, where tenants are suffering from exactly that policy. The whole purpose of getting local authorities to sell houses is not only to allow the tenants the chance to enjoy the security of owner-occupation, but to be able to reuse the capital receipts in areas in which they are most needed. We redirect the borrowing power to those areas in which the housing need is greatest. The Labour party's proposals would not produce any more cash, because, as fast as the Front-Bench spokesmen go round the country whispering to any pressure group that is willing to listen that Labour will spend a bit more cash, their colleague, the hon. Member for Derby, South (Mrs. Beckett), rushes down to the City to say that that is exactly what Labour will not do.

Sir Michael Neubert

Will my hon. Friend confirm that of the £162 million available to councils as a proportion of the receipts from the sale of houses to housing associations, less than half has been reapplied to housing? Would not it be a good thing for more of that money to be directed towards housing, especially towards the upgrading of existing housing stock, which would give a much-needed boost to the building industry?

Mr. Yeo

My hon. Friend is right to say that £75 million out of the available £160 million received from the large-scale voluntary transfers has been directed towards housing. It is entirely for the local authorities to decide how they will use the capital receipts. I should be reluctant to take even greater centralising powers to direct or force them to spend the money on housing stock. However, I have no doubt that in the areas in which housing need is considerable, my hon. Friend and other hon. Friends will talk to local authorities and try to influence the way in which they spend the money, in accordance with local need.