HC Deb 01 November 1988 vol 139 cc558-9W
Mr. Battle

To ask the Secretary of State for the Environment whether the statement in the Minister for Housing and Planning's personal letter to tenants in housing action trust areas that councils will have the resources to enable them to buy back the houses from the trust means that there will be a separate and additional provision in that local authority's housing investment programme.

Mr. Trippier

As well as writing to prospective tenants, I wrote to the leaders of the local authorities being considered for housing action trusts. In those letters I said that authorities which wish to repurchase HAT property when the trust has completed its improvement work would be given the necessary approvals to enable them to raise sufficient funds for acquisition. Under the present system, there would be an in-year addition to the council's housing investment programme allocation. Under the proposed new financial system, set out in the consultation paper, "Capital Expenditure and Finance", a supplementary credit approval would be issued.

Mr. Battle

To ask the Secretary of State for the Environment (1) whether the reference in the Minister for Housing and Planning's personal letter to tenants in housing action trust areas to rents moving in line with council rents takes account of the proposed charges to the housing revenue accounting system as set out in the consultation document published by his Department;

(2) if he will clarify whether the statement in the Minister for Housing and Planning's personal letter to tenants in housing action trust areas means rents will move in line with council rents or with market rents.

Mr. Trippier

Rents payable by tenants of housing action trusts will move in line with council rents. My letter to prospective tenants takes into account the proposals in the Government's consultation paper "A New Financial Regime for Local Authority Housing in England and Wales." One of the objectives of the proposed new system is that council rents generally should not exceed levels within the reach of people in low-paid employment.

Mr. Battle

To ask the Secretary of State for the Environment how a social landlord, as referred to in the Minister for Housing and Planning's personal letter to tenants in housing action trust areas, is to be registered.

Mr. Trippier

Clause 79 of the Housing Bill requires the Housing Corporation to maintain a register of approved landlords which shall be open to inspection.

Mr. Battle

To ask the Secretary of State for the Environment whether the legally binding guarantee about rent and long-term security referred to in the Minister for Housing and Planning's personal letter to tenants in housing action trust areas, is an assured tenancy as set out in the Housing Bill.

Mr. Trippier

Housing action trust tenants transferring to landlords approved by the Housing Corporation will be offered assured tenancies subject to the terms of part I of the Housing Bill and the tenants' guarantee or its equivalent. The Housing Corporation has issued a draft of the tenants' guarantee, "Guidance for Registered Housing Associations on Housing Management Practice." Such assured tenancies will provide long-term security of tenure. The draft guarantee also states that rents should be at levels within the reach of those in low-paid employment. The initial rent levels will be set out in the tenancy agreement which should also state the procedure and framework for altering rents.