§ Lynne JonesTo ask the Secretary of State for Transport, Local Government and the Regions what information he has collated on the average(a) market value based on right to buy sales, (b) adjusted vacant possession value and (c) value for stock transfer purposes of council houses in Birmingham. [30390]
§ Ms KeebleThe values requested are not for comparable transactions. The price payable under the Right to Buy is the open market value of the house, less a significant discount based on the number of years the purchaser has been a local authority tenant. Tenants who buy their home through RTB are subsequently free to sell the house on the open market. The value of transferring stock is determined by what is known as tenanted market value. This reflects that the property is sold with sitting tenants and with an obligation for the properties to be retained for social housing tenants. Tenanted market value is based on the income from rents the landlord will receive, less an estimate for the cost of management and repairs for the next 30 years.
(a) The average market value before discount of council houses only (ie excluding flats) sold on a right to buy basis by Birmingham in 2000–01 was £38,094.
(b) The average vacant possession value of Birmingham's city council's dwellings (ie both houses and flats) as at April 2001 was estimated to be £28,978 at January prices.
(c) The average value of council dwellings (ie both houses and flats) in Birmingham for stock transfer purposes is estimated to be £3,032 per unit.
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