§ Mr. Austin-WalkerTo ask the Secretary of State for the Environment what estimate he has made of the likely receipts from sale of the Housing Corporation's loan portfolio to the private sector; and what proportion will be re-invested in housing. [4335]
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§ Mr. ClappisonMy right hon. Friend the Secretary of State for the Environment announced on 28 November that he would shortly be appointing financial advisers to carry out detailed investigations into the options for sale and prospective disposal receipts of the corporation's loan portfolio.
In the event of sale, the proceeds would be applied to redemption of the Government's corresponding borrowing from the national loans fund.
§ Mr. Austin-WalkerTo ask the Secretary of State for the Environment what is the relationship between the figure announced on 28 November for housing associations in 1996–97 and the sum previously announced for the same period; and what assessment he has made as to the effect of the change on the number of homes likely to be constructed. [4336]
§ Mr. ClappisonAs announced on 28 November, the Housing Corporation's approved development programme—ADP—for capital investment by housing associations in 1996–97 is £1,022 million, including £19 million for city challenge schemes. The figure announced last year for the same period was £1,127 million.
The Department's provisional estimates of the lettings from the new approved development programme, compared with the previous year's estimate, is:
1996–97 1997–98 1998–99 Provisional estimate 42,000 37,300 42,900 Previous estimate, 15 December 1994 41,200 41,100 n/a The current provisional estimates reflect reduced development costs and other factors.
The ADP, together with lettings from other sources, is expected to achieve an average of around 60,000 new social lettings a year over the next three years 1996–97–1998–99.