§ Mr. SweeneyTo ask the Secretary of State for Wales what response he has received to the consultation document. "More Choice in the Rented Sector," issued on 4 August 1995; and if he will make a statement. [11463]
§ Mr. HagueThe consultation paper set out Government proposals to increase competition in the rented sector by removing current restrictions on who840W should be able to compete for housing association grant or take on transferred local authority housing. It argued that new forms of non-profit landlord should be able to register with Housing for Wales, and that a licensing system should be established to enable profit-making landlords to receive grant and transferred stock. A series of proposals regarding the monitoring and regulation of social housing were put forward, including rent controls and provisions to recoup excessive surpluses. The paper also sought views on the establishment of a statutory ombudsman for the independent rented sector; and on the appropriate approach to determining the standards to which housing schemes must conform.
Forty-seven responses were received. A list of respondents has been placed in the Library of the House. Copies of individual responses may be obtained through the Library. One response was submitted on a confidential basis.
These replies have been considered carefully. The Government have decided to proceed at once with proposals to allow new forms of non-profit landlord, such as local hosing companies, to register with Housing for Wales. I have also decided to take statutory powers to establish an ombudsman service in due course. The necessary provisions are contained in the Housing Bill which was published today. The Bill also provides new powers for Housing for Wales to protect publicly funded stock and tenants' interests in the event of a landlord becoming insolvent.
In order to facilitate transfers of local authority stock to these and other registered landlords, the Government will adopt a flexible approach to the size limit for transfers. My Department intends to issue guidance on hosing transfers incorporating advice on this and other policy changes.
The Government also intend to take forward its proposals to introduce profit-making landlords to the sector, with the, associated controls over rents and surpluses. Because of the urgent need to deal with leasehold issues in a Bill of manageable size, legislation to effect this proposal will be deferred. My Department will consult on draft clauses for these provisions, with a view to including them in future legislation. Given the postponement of legislation on opening up competition on housing association grant to profit-making companies, the Government do not intend to abolish tax relief grant at this stage.
On scheme development standards, Housing for Wales will retain the present approach for the time being. The Department of Environment and the Housing Corporation are commissioning a study into the feasibility of developing a series of housing quality indicators. A report is expected in May. I shall consider the results of the study and make a further statement on scheme development standards in due course.