HC Deb 26 July 1979 vol 971 cc464-7W
Mr. Campbell-Savours

asked the Secretary of State for the Environment how many council dwellings have been sold in Lancaster in the past year; what is the current waiting list for rental of such dwellings in the area; and by how much the waiting list has increased or diminished in the past 12 months.

Mr. Stanley

The information requested on sales of dwellings may be found in issue 49 of "Local Housing Statistics". The Department does not collect information on the size of local authority waiting lists.

Mr. Straw

asked the Secretary of State for the Environment what is the estimated proportion by number, and by value, of the total of council houses sold in each of the years 1970 to 1978 inclusive which were financed (a) by building society mortgages, (b) by local authority mortgages where the loans counted against the authorities' mortgage allocations, (c) by local authority mortgages where the loans did not count against the authorities' mortgage allocation and (d) by other non-local authority sources of finance.

Mr. Stanley

The information sought under (a) and (d) is not available; and that under (c) is not available in the form asked for. Mortgages granted for the sale of council houses should be granted under section 104 of the Housing Act 1957, and there should therefore be no loans of the kind referred to in (b).

Mr. Straw

asked the Secretary of State for the Environment what representations local authorities have made to him or his Department that sales of council houses should be restricted unless the authority is able to replace them by new building or acquisition.

Mr. Stanley

Very few.

Mr. Straw

asked the Secretary of State for the Environment what representations he or his Department have received from private builders and developers as to the effect which the sale of council houses might have; and what was the content of such representations.

Mr. Stanley

I am not aware of such representations.

Mr. Straw

asked the Secretary of State for the Environment (1) what is the net revenue which he estimates will accrue to the public sector in 1980–81, 1981–82, 1982–83 and 1983–84 from the sale of council houses; and what are the assumptions, in terms of number of houses sold, source of capital for their purchase and percentage increase in rents and costs, upon which these estimates are made;

(2) what calculations his Department has made as to the financial consequences of the sale of council houses; and if he will make these available in the Library.

Mr. Stanley

I must ask the hon. Member to await information in the next public expenditure White Paper.

Mr. Straw

asked the Secretary of State for the Environment what is the net revenue to the public sector which he estimates will accrue for the current financial year from the sale of council houses; and what are the assumptions, in terms of numbers of houses sold, source of capital for their purchase and percentage increase in rents and costs upon which this estimate is based.

Mr. Stanley

Net receipts are expected to total £218 million. The total net receipts forecast are consistent with various mixes of assumptions about the number of houses to be sold, the average discount offered and the amount of private sector finance employed, all of which are difficult to forecast precisely.

Mr. Straw

asked the Secretary of State for the Environment (1) what is his estimate of the proportion of council houses sold that remain in the hands of the original purchaser (a) at the expiry of the pre-empted period and 10 years, and (b) two years, four years, six years thereafter;

(2) if he will publish a table in theOfficial Report giving the estimated number of local authority tenants who have been tenants of any authority for a period of one year, two years, three years and for each year up to 20 years and for those who have been tenants for more than 20 years;

(3) what proposals he has to enable local authorities to replace (a) all or (b) a proportion of, council houses sold with new or acquired properties;

(4) what information on the sale of council houses he collects from local authorities or other sources; and if he will make this available in the Library.

Mr. Stanley

The information is not available in this form.

Mr. Straw

asked the Secretary of State for the Environment what would be the effect, in each year of a 20-year period, upon (a) a local authority's housing revenue account and (b) the public sector finance overall, of the sale of a council house where the sale price is £5,000, the interest rate is 11 per cent., the mortgage is 90 per cent. over 20 years, the rent is £364 per annum today, repair costs are £104 per annum, mortgage tax relief is 30 per cent., and where it is assumed (i) that the sale price represents 100 per cent., 80 per cent., 70 per cent., 60 per cent. and 50 per cent., respectively, of the market valuation of the dwelling, (ii) that rents and repair costs rise (a) at 10 per cent. each per annum and (b) at 10 per cent.—rents—and 15 per cent.—repair costs—per annum and (iii) that the dwelling today produces (a) a surplus to the housing revenue account of £300 per annum, (b) a surplus to the housing revenue account of £100 per annum and (c) deficits on the housing revenue account of £300, £600, and £900 per annum; and what other assumptions he finds necessary to use in making these costings.

Mr. Stanley

It is impossible to predict with accuracy the movements which will take place in the factors listed by the hon. Member. However, the assumptions made by the hon. Member would enable him to make his own calculations.