HC Deb 04 December 1986 vol 106 cc765-8W
Mr. Boyes

asked the Secretary of State for the Environment if he will list all disposals of council housing

(c) the profit element included in developers' costs, (d) whether the units of accommodation provided were for sales or for letting at market rents and (e) any marketing element included in the developers' costs.

Mr. John Patten

Details of housing projects, which in a few cases are combined with other uses, approved for urban development grant since 1 June 1985 are as follows. For reasons of commercial confidentiality it is not the practice to disclose details of developers' costs or profits, though these are, of course, a central part of the UDG appraisal process. Information on capital receipts is a matter for the relevant local authority. All the schemes listed provide housing for sale except The Parade, Ladywood, Birmingham, which provides lettings on assured tenancies.

during the last six years where the local authority obtained less than best consideration reasonably obtainable for the property; and if he will specify for each disposal (a) the consideration obtained by the local authority, (b) the best consideration considered reasonably obtainable and (c) why special consent was granted for the disposal.

Mr. Tracey

Disposals of council dwellings at a discount for owner-occupation are authorised by general consents and do not normally come before the Department. Disposals of housing land worth £100,000 or more for which individual consents have been granted since June 1981 are as follows. It was a condition of consent that the reduction in the land price should be passed on to purchasers within defined priority categories in the form of reduced prices for their houses or plots. The further details requested could be provided only at disproportionate expense.

(1) Sales of housing land for self build schemes
Vendor authority Date of consent Market value of land £ Sale price or percentage discount £
Broxbourne borough council 12 July 1982 300,000 1
South Buckinghamshire district council 2 March 1983 370,000 259,000
Harlow district council 21 May 1984 257,600 180,320
Suffolk Coastal district council 6 June 1984 206,500 1
Bracknell district council 13 March 1985 351,500 300,500
South Buckinghamshire district council 13 August 1985 260,000 182,000
1Not more than 30 per cent.

(2) Sales of housing land for other low cost home ownership schemes
Vendor authority Date of consent Market value £ Sale price £
Havant borough council 14 May 1982 132,000 129,190
Havant borough council 9 August 1983 390,000 165,664
Reading borough council 9 September 1983 100,000 12,000
Bromley London borough 1 November 1983 260,000 130,000
Reading borough council 3 July 1984 330,000 230,000
Reading borough council 3 September 1984 195,000 105,000
Havant borough council 21 December 1984 176,000 116,176
Havant borough council 13 May 1985 160,000 112,000
1Plus profit sharing arrangement.

Mr. Boyes

asked the Secretary of State for the Environment if he will list all disposals of council housing to housing associations during the last six years; and if he will specify for each disposal (a) the consideration obtained by the local authority, (b) the outstanding debt charges on the property and (c) whether the properties were subsequently (i) let at fair rents, (ii) sold under a lowest homeownership scheme and (iii) sold on the open market.

Mr. Tracey

The information is not readily available. The Secretary of State has granted a general consent for disposals of council housing at current market values for improvement and resale into owner occupation. Information about other sales to housing associations, under individual consents, is not held centrally and could be collected only at disproportionate expense.

Mr. Boyes

asked the Secretary of State for the Environment what representations his Department has received concerning (a) the requirement that where empty council houses are sold, the disposal must be for owner-occupation, (b) the requirement that where council houses are disposed of to housing associations, the transfer price shall be set at the local authority's outstanding loan debt where that is below the market value; (i) what specific issues have been raised, and (ii) which bodies have expressed themselves in favour of a relaxation of the requirement that empty council houses can be sold only for owner-occupation.

Mr. Tracey

The local authority associations and other interested bodies have commented on a consultation paper issued in September on the review of the general consents to the disposal of council houses and land by agreement. The proposals, which would include consent for the disposal of empty council houses for purposes other than owner-occupation, have generally been welcomed, but reservations have been expressed about the proposal that all disposals to housing associations should be at market value. The responses are under consideration.

Mr. Wheeler

asked the Secretary of State for the Environment whether he will raise the limit of £25,000 on discount under the right to buy.

Mr. John Patten

Yes. My right hon. Friend intends shortly to make an order setting a new limit of £35,000 in order to take account of inflation since 1980, when the present limit was set.