HC Deb 30 November 1989 vol 162 cc336-7W
Mr. Gareth Wardell

To ask the Secretary of State for Wales if he will list all those measures which have been taken since 1985 to increase the supply of low-cost housing in rural areas, and if he will make a statement.

Mr. Grist

Since 1985 the Housing Corporation, and more recently Housing for Wales, has been asked to pay particular attention to rural areas. Consistently about 25 per cent. of the development programme for housing associations in Wales has, therefore, gone to these areas.

More specifically, in July 1989, Housing for Wales announced a rural housing initiative to assist local people, and especially young people, to find a suitable home they can afford in their own communities. This initiative will be run on a pilot basis in 31 villages, the majority of homes being provided on shared ownership terms with a pre-emption right to return the home eventually to the relevant housing association.

In addition, Housing for Wales has recently commissioned two research projects on rural housing issues. These will consider the nature and extent of need for housing for young people throughout rural Wales and will assist Housing for Wales in the development of its future strategy to meet the needs of rural areas.

In June this year a draft planning guidance, "Low cost housing in rural areas in Wales", was issued for consultation and we are currently considering the responses received.

In his Budget statement my right hon. Friend the Chancellor of the Exchequer announced changes to capital gains and inheritance taxes on land sold at less than best price to registered housing associations. Tax is now based on the actual proceeds of sale rather than the market value, thereby encouraging landowners to release small units of surplus land for low-cost local housing needs.

Local authorities also have a very important role to play both in assessing local housing requirements and in seeking to achieve the most cost-effective means of matching them. In addition to the general resources that the Department has made available to Welsh authorities we have also allocated £1 million this year between nine authorities to purchase homes which would otherwise become second homes and then to make those homes available to local people.

The Department is working with rural authorities and other agencies in Wales to help to broker best practice in meeting rural needs.