§ 24. Mr. Hannam
asked the Secretary of State for the Environment how many local authorities are not operating the right-to-buy provisions of the Housing Act 1980.
§ Mr. Stanley
No authority is now refusing outright to implement the provisions. But we have taken up the question of progress formally with the authorities listed in the answer I gave to my hon. Friend the Member for Putney (Mr. Mellor) on 1 May—[Vol. 3, c.474–5.] and in the previous answers referred to.
§ Mr. Geoffrey Finsberg
In 1980 it is estimated that 14,300 council dwellings were sold in Greater london under the voluntary and right to buy sales schemes, excluding those under shared ownership schemes.155W
More detailed information on sales of council houses between January and September 1980 in table 9a of "Local Housing Statistics" No. 57, copies of which are in the Library. For more detailed information on sales under the right to buy, I refer my hon. Friend to the answer my right hon. Friend gave to the right hon. Member for Manchester, Ardwick (Mr. Kaufman) on 10 April.—[Vol. 2, c. 381.]
§ 38. Mr. Dobson
asked the Secretary of State for the Environment what is the average sum per dwelling sold available for investment in house building or rehabilitation by local authorities as a result of their sale of council houses, allowing for the average discount, the 50 per cent. of the sale price that goes to central Government and the extent to which council house purchasers take up council mortgages; and what percentage this represents of the original total valuation.
§ Mr. Stanley
If the hon. Member is suggesting that 50 per cent. of the cash proceeds from council house sales goes to central Government, this is incorrect. The entire cash sum remains in the hands of the local authority for use as it sees fit to finance new investments, within the investment total allowed under the capital control arrangements, or to redeem existing debt, with consequent benefit to its ratepayers. The hon. Member is, however, presumably referring to the authority's ability to enhance its capital allocation, and thus the total amount it may invest, on account of capital receipts. On the same assumptions as those used in my answer to him of 18 December 1980—[Vol. 996,c. 441]— the average amount by which an authority would immediately increase its capital allocation on account of each council house sold is £1,755. This would represent 9.9 per cent. of the assumed average valuation before discount. In addition, the authority would be able to increase its allocation by 50 per cent. of repayments of principal on mortgages it has given to finance council house sales.