§ Mr. Hunter
asked the Secretary of State for the Environment if he has received any assurances from building societies that houses of the categories specified in the Housing Defects Act, but which are free from structural defects, will now be regarded as mortgageable.
§ Mr. Gow
Although prefabricated reinforced concrete dwellings of the types designated by my right hon. Friend under the Act may not show any visible evidence of defects, the Building Research Establishment has advised that they are all likely to require major structural repair within the period of further life normally required by building societies of a property taken as security for a mortgage loan. Those who have purchased such dwellings are eligible for assistance under the Housing Defects Act 1984 provided that they bought before the cut-off date which applies to their type of property and provided the dwellings were orginally sold by the public sector.
The Building Societies Association has participated in arrangements made by the National House-Building Council for the approval of repair systems and an associated warrantly for these houses. I am confident that building societies generally will lend on houses repaired using such approved systems.