§ Mr. Allan Stewartasked the Secretary of State for Scotland what conclusions he has reached on the housebuilding role of the New Town Development Corporation in the light of his recent review.
§ Mr. RifkindThe policy which the Government introduced in 1983 temporarily restricting new general needs housebuilding by the development corporations was designed to increase the opportunity for private development of housing, to broaden housing choice, and to improve the tenure balance in new town communities. We made it clear that the policy would be reviewed after it had been in operation for a few years.
In reviewing the corporations' role in housebuilding, I have carefully considered the detailed evidence they have presented on housing needs in their areas. To assess the adequacy of future housing supply, I have also had regard to the special demographic factors affecting new towns and their impact on the local housing market.
The review has confirmed that the policy adopted in 1983 has been instrumental in extending home ownership and private housebuilding in the new towns. Completion rates have nearly doubled since 1983. The level of home ownership, supported by our commitment to the right to buy as well as by new private housebuilding, has risen appreciably. We remain committed to further private housing development in the new towns, both as a means of promoting balanced communities and as an attraction to industrial investment. The provision of a broad range of housing is vital to the fulfilment of the corporation's economic development role.
At the same time, we recognise that projected household growth in new towns is at least double the Scottish average. It would be unreasonable to expect the private sector to satisfy all the housing needs implied by this growth. A mixed supply of housing capable of meeting the needs of the rising generation must be maintained if the towns' natural population growth is to be protected. In these circumstances, I have decided that it is now appropriate to lift the moratorium on general needs housebuilding by corporations and to allow corporations themselves to assess the relative priorities as between house improvement and new building for rent in their areas.
I am also concerned to ensure proper integration of general and special needs development.
To enable corporations to finance a new build programme, we are making available £6 million more for new housing investment than was allocated last year. In addition, corporations will be permitted to plan ahead on the assumption that, depending on the overall resources available for housing investment, they may expect to receive in aggregate a further increase of some £8 million over the 1987–88 level phased over the following two years. With some readjustment of priorities this would be sufficient to permit the construction of 1,400 houses for rent over the next three years. The precise size of the new building programme will depend on corporations' assessment of priorities in their areas.
I am confident that the programme we envisage will enable corporations to meet the particular needs for rental housing arising in the new towns. Sustained private sector 829W activity will complement the corporations programmes. This will secure our major aim of creating viable, diverse and balanced communities in the new towns before the development corporations are wound up.