§ Mr. Durantasked the Secretary of State for the Environment whether his Department has completed its discussions with the Building Societies Association over model clauses for inclusion in shared ownership leases; and what benefits will arise from the clauses.
§ Mr. StanleyThe model clauses are being sent this week to all local authorities, new towns and to the Housing Corporation. They have been endorsed by the Building Societies Association, and their inclusion in shared ownership leases should improve the likelihood of building society mortgages being made available for shared ownership purchasers. Such mortgages have an important public expenditure advantage over mortgages granted by authorities themselves because they generate an immediate cash receipt which can be used to increase housing investment programme allocations.
The Building Societies Association's endorsement of the model clauses represents a significant step forward for shared ownership and will help to bring home ownership within reach of those for whom up to now it has been impossible.