HC Deb 13 February 2004 vol 418 c24W
Mr. Purchase

To ask the Deputy Prime Minister pursuant to his oral answer of 4 February 2004,Official Report, column 748, what estimate he has made of the return anticipated by investors on the £8 billion private investment made in former council housing to which he referred; and what part of the £8 billion private investment and servicing charges being made in former council housing will be recouped by investors in charges (a) to the Exchequer and (b) to tenants. [154312]

Keith Hill

Private Finance raised by registered social landlords (RSLs) in order to purchase and improve former council housing will be obtained on a competitive basis at the market rate at the time of borrowing. The National Audit Office report "Improving social housing through transfer" published in March 2003 recorded that transfers in 2000–01, the last full year covered by the report, secured loans with margins ranging from 0.1 per cent. to 0.5 per cent. above base rates. Provision for the repayment of the loan principal and associated interest will be included with in the RSL's business plan.