§ Mr. Corbettasked the Secretary of State for the Environment what consultations he proposes to have with district councils in the areas of which new towns form a part over the possible sale of public housing to tenants.
§ Mr. Guy BarnettWe shall be discussing with the chairmen of development corporations arrangements for making new town rented houses available for purchase by sitting tenants in appropriate circumstances. Among the matters to be discussed is the question of consultation with the district council or councils before sales are resumed in a particular new town.
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§ Mr. Douglas-Mannasked the Secretary of State for the Environment if he will introduce legislation to regulate the practice of local authorities selling their assets to individuals at less than market value.
§ Mr. FreesonI have no proposals for legislation at present.
§ Mr. Douglas-Mannasked the Secretary of State for the Environment on what basis the market value is assessed of houses owned by a local authority which it is proposed to sell; whether such assessment is based on information supplied to district valuers by the Inland Revenue of the consideration paid on the sale of other houses in the locality; and what is the average time that elapses between the date of the contract for such sales and the date when the information relating to the sales is supplied to the district valuer.
§ Mr. FreesonWithin the relevant statutory constraints, local authorities have the responsibility of satisfying themselves that they obtain an appropriate price when selling council houses. The assessment of market value would be on the basis of vacant possession value subject to any conditions imposed on the sale. Local authorities were informed in paragraph 9 of Appendix II of Circular 54/70 that they may seek the advice of the District Valuer on the current market value of the properties, or types of property, which they propose to offer for sale, but they are not obliged to do so.
§ Mr. Douglas-Mannasked the Secretary of State for the Environment on what evidence he based his statement, in reply to the Question from the hon. Member for Mitcham and Morden on 29th March 1976, Official Report, column 344, that the average discount of 17 per cent. on the sale of local authority dwellings in 1974–75 reflected the restriction on current market value arising both from the local authority's right of pre-emption and from the restriction on the resale price; and whether he will seek the views on this point of estate agents practising in the localities where local authority dwellings have been sold in the last five years.
§ Mr. FreesonThe general issue is being considered.
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§ Mr. Douglas-Mannasked the Secretary of State for the Environment what has been the average discount expressed if possible both in cash and percentage terms, from estimated market value on the sale of local authority dwellings in each of the last six years.
§ Mr. FreesonFor 1974–75 the average discount is estimated at £1,150, or 17 per cent. of the unrestricted market value. I regret that similar information is not available for other years.