HC Deb 16 November 1990 vol 180 cc241-4W
Mr. Kirkwood

To ask the Secretary of State for Scotland if the Secretary of State will make it his policy to consult the district valuer and to treat his independent assessment of value as of paramount importance when arriving at a purchase price to be paid by private sector landlords acquiring former public sector or Scottish Special Housing Association properties under the housing Acts.

Lord James Douglas-Hamilton

The purchase price to be paid by landlords acquiring tenanted public sector housing under the tenants' choice provisions of the Housing (Scotland) Act 1988 falls to be determined by reference to the provisions of section 58 of that Act.

Where a public sector landlord, including Scottish Homes, proposes voluntarily to dispose of tenanted housing to another landlord it is in the first instance for the body disposing of the stock to satisfy itself as to the acceptability of the disposal price. Guidance given to authorities with regard to voluntary disposals indicates that the district valuer should normally be invited to value the stock. In considering whether to give his consent to a disposal, my right hon. and learned Friend would wish to satisfy himself that the disposal terms taken as a whole offered acceptable value for money. He would expect to be guided by the district valuer's valuation and he would determine each case according to its merits.

Mr. Kirkwood

To ask the Secretary of State for Scotland what restrictions are to be placed on the title deeds of former public sector or Scottish Housing Association properties sold to alternative private sector landlords under the provisions of the current Scottish housing Acts.

Lord James Douglas-Hamilton

Landlords acquiring property from local authorities and new town development corporations by way of the voluntary disposal provisions require the consent of my right hon. and learned Friend to the subsequent disposal of such stock. He will wish to be satisfied that tenants have been properly consulted and will take account of their views.

Under Scottish Homes' voluntary disposal procedures, a condition of sale will be that the new landlord will seek the consent of Scottish Homes before the first subsequent sale can be effected. Before giving consent Scottish Homes will wish to be satisfied that tenants have been properly consulted and will take account of their views.

Similarly, landlords who acquire property from the public sector under the tenants' choice provisions will require to obtain the consent of Scottish Homes to the first subsequent disposal. Again, Scottish Homes will have regard to the views of tenants.

Mr. Kirkwood

To ask the Secretary of State for Scotland what powers are available to Scottish Homes to subsidise the purchase price as set by the district valuer to be paid by alternative private sector landlords acquiring the ownership of former public sector or Scottish Special Housing Association properties under the provisions of the current Scottish housing Acts.

Lord James Douglas-Hamilton

Under section 2(2)(a) of the Housing (Scotland) Act 1988, Scottish Homes has powers to pay grants provided that these have the approval of my right hon. and learned Friend given with the consent of Treasury or in accordance with a general authority. Authorities already in place enable Scottish Homes to pay housing association grant to registered housing associations and co-operatives to acquire and develop properties. In addition, Scottish Homes can pay grants to assist private developers and others in the provision of housing at market rents and for owner occupation. It is for Scottish Homes in the first instance to satisfy itself as to the grounds for providing grants in individual cases.

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will list in theOfficial Report the statutory steps which must be satisfied before an alternative private sector landlord may acquire the heritage of public sector or Scottish Special Housing Association properties under the provisions of the current Scottish housing statutes.

Lord James Douglas-Hamilton

Private sector landlords can acquire tenanted public sector stock by 2 separate routes, either through voluntary disposal by the authority or through tenants' choice arrangements.

Voluntary disposal of local authority stock generally requires the consent of my right hon. and learned Friend in terms of section 12 of the Housing (Scotland) Act 1987, as amended. Guidance given to local authorities on 27 September 1988 sets out the general criteria which my right hon. and learned Friend would expect to adopt when considering applications for consent to disposals of local authority stock. A copy of this guidance has been placed in the House Library.

In the case of Scottish Homes stock, my right hon. and learned Friend has already agreed with Scottish Homes the procedures they will adopt in considering voluntary disposal of housing stock. A copy of the procedures is being placed in the Library of the House.

The tenants' choice route applies only if the tenants themselves individually choose to transfer. The statutory steps involved in the route begin with the approval of landlords by Scottish Homes. Before approved landlord status is given Scottish Homes will make a rigorous assessment of the landlord. Once an interest has been shown in acquiring stock the approved landlord will be free to approach the tenants concerned. The terms of the new assured tenancy will be agreed between the tenant and the new landlord.

Any new town development corporation tenant can choose to exercise tenants' choice.

Mr. Kirkwood

To ask the Secretary of State for Scotland what steps he proposes to take to ensure that all existing public sector tenants who are currently contemplating a change to an alternative private sector landlord are fully advised of all the implications of the result of the ballot to transfer from the public sector to the private sector landlord.

Lord James Douglas-Hamilton

Transfers under the tenants' choice provisions are conducted on an individual basis and require the agreement of the individual tenants. There is therefore no need for a ballot to be held.

Guidance which we have given to local authorities considering voluntary disposals advises that when notifying tenants of transfer proposals they should set out the detailed implications of the disposal for the tenant. Such disposals do not necessarily require a ballot of tenants to be undertaken, but in considering any proposals put to him my right hon. and learned Friend will wish to be advised of the consultation undertaken with the tenants, the outcome of that consultation and the views expressed. His consent to disposal would be withheld where it appeared to him that a majority of tenants affected opposed the disposal. Therefore the holding of ballots is an important element in determining the views of the tenants.

Similar guidance regarding voluntary disposals has been given to Scottish Homes.

I attach a high priority to ensuring that tenants are well informed about the opportunities available to them. Scottish Homes has been strongly resourced for this purpose and I welcome its establishment of a panel of independent bodies to provide advice to tenants on specific proposals.

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will list in theOfficial Report any curcumstances where an alternative private sector landlord could be authorised by the Secretary of State to sell former public sector properties which had been acquired by the alternative private sector landlord via a process of voluntary disposal or tenants' choice under the provisions of the current Scottish housing Acts.

Lord James Douglas-Hamilton

Where an approved landlord has acquired stock under the tenants' choice provisions and then seeks to dispose of the property he must take appropriate steps to consult the tenants involved and seek the consent of Scottish Homes. In determining whether consent should be given Scottish Homes is required to have regard to the views of tenants.

The subsequent disposal of stock acquired from a local authority under a voluntary disposal requires to be approved by my right hon. and learned Friend. Such approval can only be given where tenants have been adequately consulted and following consideration by my right hon. and learned Friend of the responses of tenants to that consultation. The subsequent disposal of stock acquired from Scottish Homes under a voluntary disposals would as a condition of contract require to be approved by Scottish Homes. This approval would only be given where tenants had been adequately consulted and having regard to tenants' views.

Mr. Kirkwood

To ask the Secretary of State for Scotland what criteria will be used to determine whether a ballot conducted to determine a change of landlord has been fairly conducted; and whether he has specified any circumstances in which he would approve a change from a public to private sector landlord in the event that such a ballot did not achieve a clear majority view among tenants in favour of any such change.

Lord James Douglas-Hamilton

A local authority considering voluntary disposal of tenanted stock is not required by statute to conduct a ballot as a means of consulting tenants. Guidance we have given to authorities advises however that in addition to notifying potentially affected tenants of proposals they may wish to organise a formal ballot to clarify views. In considering any proposals placed before him, my right hon. and learned Friend would take into account views expressed by tenants involved. His consent to disposal would be withheld where it appeared to him that a majority of tenants affected opposed the proposal.

Similar arrangements will apply to Scottish Homes. Moreover, the board of Scottish Homes has decided that it will not recommend a transfer to my right hon. and learned Friend unless there is a majority of tenants voting who vote in favour.

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will list in theOfficial Report any existing rights that are available to tenants in public sector or former Scottish Special Housing Association houses as a result of the ownership of their houses being transferred to an alternative private sector landlord.

Lord James Douglas-Hamilton

Tenants transferring under the tenants' choice provisions will be free to negotiate with prospective landlords which rights they wish to secure in the event of transfer. Transfer will be on an assured tenancy basis.

Tenants affected by voluntary disposals will also transfer as assured tenants. The terms of transfer would be those agreed between the existing and prospective landlords and as detailed in the consultation process. Tenants would generally retain their existing right to buy and would have the right to be consulted prior to any subsequent disposal.

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