§ Mr. Gilroy Bevanasked the Secretary of State for the Environment what is the latest state of negotiations with regard to owner-occupied Smith-type houses in Birmingham; and if he will make a statement.
§ Mr. John PattenI announced on 19 December 1985 that the Government, recognising the problems faced by Smith home owners in Birmingham and elsewhere, and in the light of latest Building Research Establishment evidence, intended to designate Smith houses nationally under the housing defects legislation. That designation was not made straight away in order to give Birmingham city council and certain other authorities the opportunity to make local designations to deal with additional foundation defects. The Government have now made the national designation and eligible home owners are therefore entitled to assistance, either reinstatement grant or, in certain circumstances, repurchase at 95 per cent. of defect-free value. As I explained to my hon. Friend, and to my hon. Friend the Member for Birmingham, Hall Green (Sir R. Eyre) when I met them on 15 May. We look to Birmingham, and other local authorities, to implement the legislation in a reasonable way. The council has indicated that it envisaged repurchase of the designated properties: I will wish to explore with it whether this is the right course of action, especially for those owners who have been looking forward to having their houses repaired with grant assistance under the legislation.