§ Mr. AmosTo ask the Secretary of State for the Environment if he will list all those measures which have been taken since 1985 to increase the supply of low-cost housing in rural areas; and if he will make a statement.
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§ Mr. Howard[holding answer 14 November 1989]: In July 1988 the Government announced their rural housing initiative which for the first time set out a specific policy on low-cost housing in smaller villages. The Housing Corporation established a special rural programme aimed at expanding the role of housing associations in villages with a population of under 1,000. Last Wednesday I invited the Housing Corporation to propose a further increase in this programme to allow 1,000 approvals next year, 1,200 in 1991–92 and 1,500 in 1992–93. I also asked it to separately identify a rural element within its low-cost home ownership programme, to allow 250 approvals next year, 300 in 1991–92 and 350 in 1992–93.
We are introducing a scheme in certain rural areas whereby housing associations can repurchase former shared ownership dwellings at full market value when an occupier moves on. The Housing Corporation will guarantee to make the necessary funds available, without reducing the corporation's rural rented or shared ownership programmes.
Last February we announced changes to planning rules which will enable local planning authorities exceptionally to release small pockets of land, not previously designated for housing, for low cost schemes to meet the needs of local people.
In his Budget statement my right hon. Friend the Chancellor of the Exchequer announced changes to capital gains and inheritance taxes on land sold at less than best price to registered housing associations.
Tax is now based on the actual proceeds of sale rather than the market value, thereby encouraging landowners to release small units of surplus land for low-cost local needs housing.
In addition rural areas can expect to benefit from the encouragement we have given to private investment in the rented sector through deregulation and the tax incentives available under the business expansion scheme. Areas with shortages of low-cost housing should also benefit from various measures that are being taken to improve the focusing of capital resources, both for local authorities and housing associations, on areas with the greatest needs.
Taken together these measures should make a significant contribution to increasing supply in rural areas with a need for more low-cost housing.