§ Ms Rosie WintertonTo ask the Secretary of State for the Environment, Transport and the Regions what proposals he has to adjust the right to acquire discount which is available to some registered social landlord tenants. [98272]
§ Mr. RaynsfordI will lay before Parliament tomorrow The Housing (Right to Acquire) (Discount) (Amendment) Order 1999 No. 3028. Subject to Parliamentary approval, it will come into force on 2 December.
The Right to Acquire scheme gives eligible tenants of registered social landlords the statutory right to buy the home they currently rent, with the help of a discount of between £9,000 and £16,000 depending on the area in which they live. The change will limit that discount to 50 per cent. of the value of the property where that is less than the flat rate discount for the area.
Under the current arrangements, tenants in areas where property values are very low could purchase for a very low or nominal sum. This was not the original intention of the scheme, and does not represent a fair contribution from the purchaser towards the cost of acquiring the property.
The change will bring the Right to Acquire more into line with the Right to Buy and offer better value for money for the taxpayer. It will also help protect some registered social landlords whose financial position could be adversely affected if a substantial number of eligible tenants of low value properties were to exercise their Right to Acquire.
We are also considering the introduction of a "cost floor" to the Right to Acquire which would be similar to that which operates under the Right to Buy scheme. This would limit the discount available to some tenants whose homes have recently been acquired, built or improved while ensuring that registered social landlords recover the amount they have invested in the property. However, the issues are complex and require further examination before we decide whether to go ahead.