§ Mr. Cohenasked the Secretary of State for the Environment what safeguards the London Docklands Development Corporation has to seek to prevent the manipulation of the affordable homes schemes to secure the benefits of the scheme for persons not so entitled; and if he will make a statement.
§ Sir George YoungThe LDDC has recently reviewed the operation of its "affordable housing policy" and taken steps to prevent the abuse of the priority arrangements for local tenants. Priority is given to local authority tenants554W living within the docklands boroughs, who can provide evidence of tenancy and who have been on the electoral roll at their council address for 12 months. After six weeks on the market, the builder may then take reservations from open market purchasers.
All purchasers of affordable homes (that is priced at £40,000 or less) are now required by covenant to pay the LDDC on resale a proportion of the difference between the affordable selling price and the open market selling price at the time of the original reservation. The proportion to be paid declines in stages over a five-year period.
Purchasers are also required to sign a declaration to the effect that they will take occupation of the dwelling being purchased. LDDC has publicised these new arrangements within the local communities.