§ Mr. Michael Cocksasked the Secretary of State for the Environment (1) if he will request local authorities to take steps to prevent private loan companies from operating on 71W their housing estates to pressurise tenants into taking out loans with them to exercise their right to buy their houses; and if he will make a statement;
(2) if he will introduce legislation prohibiting private loan companies from offering money to council house tenants to provide a deposit for the purchase of their houses under the Housing Act.
§ Mr. TraceyNo: council tenants must be free to take their own decisions about borrowing, but they should, of course, think carefully whether they can afford to buy. Tenants with the right to buy have the right to a mortgage from the landlord, subject to an income test. If the tenant is not entitled to a mortgage sufficient to enable him to buy outright, he has the option of purchase of shared ownership terms. I hope tenants will consider that option rather than extra borrowing.