HC Deb 26 July 1990 vol 177 cc382-3W
Mr. Gorst

To ask the Secretary of State for the Environment what representations he has received from or on behalf of people who bought council houses and have been unable to resell them since the Building Research Establishment issued a report in 1987 alleging defects in large panel system dwellings and building societies have refused to accept mortgage risks on such properties; what action he is taking to deal with the situation; and if he will make a statement.

Mr. Michael Spicer

My Department has received a number of representations about the mortgageability of dwellings built from large panels, and we commissioned our Building Research Establishment to carry out a major study to establish the facts about the structural adequacy and durability of such buildings. That study revealed no general problem of structural safety. We published the report in 1987, and drew it to the attention of major lending institutions, who have confirmed that it is their policy to grant mortgages on large panel system dwellings, judging each building on its merits, in the same way as they do dwellings of more traditional construction.