Repossessed Homes (Hansard, 6 November 1991)

§ 16. Mr. Burns
To ask the Secretary of State for the Environment what representations he has received concerning the standard community charge for repossessed homes in 1990–91; and if he will make a statement.

§ Mr. Key
We received a number of representations following the introduction of the community charge and, as a result, we created an additional statutory class of property so that no standard charge could be levied on a repossessed home. This took effect from last April.

§ Mr. Burns
I thank my hon. Friend for that reply and congratulate him on making what was obviously the correct decision. But may I draw to his attention the problems facing those whose houses were unfortunately repossessed in the financial year prior to April 1991, many of whom now face community charge bills amounting to twice the personal community charge? As local authorities cannot now change that, will my hon. Friend's Department examine the problem and help people who would have been exempt had their houses been repossessed this year rather than last and who would thus not have faced a financial burden on top of the misery of repossession?

§ Mr. Key
We have looked at the matter carefully, and I am sorry to say that I cannot give my hon. Friend much hope, although I pay tribute to him for the assiduous way in which he has looked after his constituents' interests. We have had copious correspondence about Mr. and Mrs. Pegrum in his constituency. We have now changed the arrangements. Of course, until last year, Chelmsford was a Liberal-controlled authority. I am glad that the Liberals are no longer in control. We trusted local authorities to be serious and sensible, but they were not. That must have been one of the things that caused the electors in my hon. Friend's constituency to chuck them out.

§ Mr. Tony Banks
Is the Minister aware that there could be 100,000 repossessions of houses this year? Is he aware of the suffering and misery that that means for many people, which, in many respects, is caused by the Government's economic policies? What monitoring is the Department of the Environment carrying out in respect of repossessions? What additional resources are being made available to local authorities which have to rehouse people whose houses have been repossessed by the building societies? What discussions are taking place between Government Departments, the banks and building societies to see what can be done to alleviate the suffering?

§ Mr. Key
My hon. Friend the Minister of State has had detailed discussions with the Council of Mortgage Lenders and recently announced his new initiative with the council with regard to repossessed properties being passed to housing associations for temporary letting to homeless families nominated by the local authorities. That brings empty properties back into use and provides homes for families. It also restores confidence in the market. Incidentally, it also means that the balance of rental income after the administrative costs to the housing association goes back to the lender and that helps to keep the defaulter's debt down as well.