HC Deb 23 May 2000 vol 350 cc465-6W
Mrs. Ewing

To ask the Secretary of State for Defence if he will list the regulations he intends to implement on the disposal of MOD housing stock; and what discussions he has held with relevant local councils and housing associations to reach an early conclusion. [122110]

Dr. Moonie

[holding answer 17 May 2000]: The guidelines to which all Departments work when disposing of surplus property assets are contained in Chapter 32 of Government Accounting.

Houses in England and Wales which were included in the sale of service families accommodation to Annington Homes Ltd., are passed to the company for disposal in accordance with the terms of the sale.

When disposing of surplus housing owned by the Ministry of Defence my Department seeks to achieve the maximum return for the taxpayer generally. In most instances this is through sale on the open market.

Local authorities and Housing Associations formally become aware of our surplus housing through the planning and marketing process, and have the opportunity to take part in the purchase process should they wish to do so. There is of course extensive contact between officials in Defence Estates and local authorities on the range of estate planning and disposal issues.

It is our policy to dispose of surplus properties as soon as possible to enable their early and productive re-use.

Mrs. Ewing

To ask the Secretary of State for Defence if the Defence Housing Executive has reached a conclusion as to the method and timing of surplus MOD housing stock being released to council and housing association stock. [122109]

Dr. Moonie

[holding answer 17 May 2000]: There has been no change in the Defence Housing Executive's (DHE's) policy on the method and timing of the release of surplus Ministry of Defence housing stock to local authorities and housing associations.

The bulk of Service Families Accommodation (SFA) in England and Wales are held by the Ministry of Defence on an underlease from Annington Homes Ltd. (AHL). Properties which become surplus to military requirements are handed back to AHL for disposal. Where appropriate, the DHE does release properties to housing associations and local authorities for short term let, but the properties which are available are often not attractive to them.

Surplus SFA in Scotland is passed to Defence Estates (DE) who determine the appropriate disposal strategy. All relevant factors are taken into consideration and DE will normally liaise with the local authority housing division to ensure that they are made aware of the intention to offer housing for sale. This is intended to allow the council time to plan accordingly and to consider whether they may wish to bid for the properties when they are offered for sale.

Where appropriate, consideration can be given to a sale to a local authority or housing association by private treaty at open market value, in line with existing Treasury guidelines.