HC Deb 18 July 1989 vol 157 cc106-8W
Ms. Harman

To ask the Secretary of State for the Environment (1) how the tenancies of tenants of Southwark council in Gloucester grove and north Peckham estates will change in the event of a housing action trust being created in Southwark;

(2) whether the terms of the new tenancy agreements in any housing action trust established in Southwark will be subject to change by the housing action trust.

Mr. Trippier

If secure tenants of Southwark council transferred to a housing action trust, their existing tenancy agreements with the council would also be transferred without change to the trust and their status as secure tenants under the Housing Act 1985 would be unaffected. A trust, like the council, could vary only any non-statutory terms included in tenancy agreements. To do this, the trust would be required to follow the procedures in sections 102 and 103 of the Housing Act 1985.

Ms. Harman

To ask the Secretary of State for the Environment if the options of postal and personal voting will be available to all tenants in any ballot on the proposed creation of a housing action trust in Southwark.

Mr. Trippier

The Electoral Reform Society has agreed to conduct housing action trust ballots. Under the terms of section 61(3)(a) of the Housing Act 1988 the society will be responsible for making the detailed ballot arrangements "in such manner as seems best to them".

Ms. Harman

To ask the Secretary of State for the Environment in the event of a housing action trust being established in Southwark, what proportion of current rent arrears will be left(a) to Southwark council to recover and (b) made the responsibility of the housing action trust.

Mr. Trippier

We shall decide in due course how to treat outstanding rent arrears on property transferred to housing action trusts. In the meantime, the local authorities concerned remain responsible for the proper and efficient collection of rents that are due, for the benefit of all their tenants and rate or community charge payers. My right hon. Friend the Minister for Local Government announced proposals on 26 June, Official Report, column 345, for the financial management by local authorities of their rent arrears from 1 April 1990.

Ms. Harman

To ask the Secretary of State for the Environment (1) what is the minimum interval he will set between any votes to establish a housing action trust in Southwark in the event of a negative vote;

(2) what will be the outcome of conflicting results in any ballot on the establishment of a housing action trust in (a) the North Peckham estate and (b) the Gloucester Grove estate.

Mr. Trippier

It is premature to speculate on the outcome of any housing action trust ballots.

Ms. Harman

To ask the Secretary of State for the Environment what powers any housing action trust created in Southwark will have to evict tenants.

Mr. Trippier

Any housing action trust set up in Southwark would have exactly the same powers as Southwark council to secure possession of dwellings occupied by tenants. The grounds for possession of dwellings let under secure tenancies are in schedule 2 to the Housing Act 1985.

Ms. Harman

To ask the Secretary of State for the Environment what steps will he taken to ensure that the register of tenants eligible to vote in any ballot on the proposed creation of a housing action trust in Southwark has been compiled correctly.

Mr. Trippier

Section 61(2) of the Housing Act 1988 requires the Secretary of State to use his best endeavours to secure that notice of any proposal he is considering to designate an area as a housing action trust area is given to all tenants of houses in the area who are secure tenants or who are tenants of such description as may be prescribed by regulations. We shall seek the assistance of the local authority, using the powers available under section 90 as necessary, in carrying out our duty under section 61. I am sure that local authorities will want to co-operate in providing the necessary information so that all eligible tenants have a proper opportunity to express their views in a ballot.

Ms. Harman

To ask the Secretary of State for the Environment what will be the relationship between any housing action trust and those tenants who had exercised their right to buy in the event of a housing action trust being created in Southwark.

Mr. Trippier

If a housing action trust were set up in Southwark the ownership of the freehold of properties whose owners had bought a long lease from the council would pass to the trust. The position of any owners who have bought the freehold of their homes would not change.

Ms. Harman

To ask the Secretary of State for the Environment whether rent levels will be set beneath the level of maximum housing benefit in any housing action trust established in Southwark.

Mr. Trippier

Housing benefit will meet in full the housing costs of qualifying tenants; and local authorities will receive subsidy on housing benefit paid up to the level of market rents. Rents charged by housing action trusts will be linked, after improvements have been carried out, to council rents for similar properties in the area. Since we are not proposing that council rents should be set at market levels, the rents charged by any trust set up in Southwark should not be above the level at which housing benefit would be paid.

Ms. Harman

To ask the Secretary of State for the Environment whether the tenancies of residents of Gloucester grove and north Peckham estates will he statutorily secure(a) during the duration of any housing action trust and (b) after the winding-up of any housing action trust.

Mr. Trippier

Secure tenants of Southwark council who transferred to a trust would become secure tenants of the trust. Once the trust had carried out improvements tenants might transfer back to the council and become secure tenants again. Alternatively they might opt to become assured tenants of a landlord, such as a housing association or co-operative, that is approved by the Housing Corporation and, therefore, subscribes to the principles in the tenants' guarantee.