§ Mr. CohenTo ask the Secretary of State for the Environment if he will give details of his rents into mortgages scheme in Basildon; if he will indicate the discount given in relation to size of mortgage; and if he has made an assessment of the cost of implementing such a scheme across the United Kingdom at levels of take-up in 10 per cent. bands.
§ Mr. YeoThe scheme is for tenants of the Commission for the New Towns at Basildon who would like to buy their home and who pay their full rent but cannot afford the right to buy. They can buy their home for a minimum initial payment of the amount they could borrow on a mortgage with repayments equivalent to their rent. This initial payment will attract discount in accordance with the right-to-buy rules; tenants paying half the right-to-buy price will get half their right-to-buy discount.
The Commission will retain a charge over that part of the value of the property not covered by the tenant's payment and discount. The charge may be redeemed at any time, but must be redeemed if the property is sold or, normally, on the death of the purchaser. The amount needed to redeem the charge will be the appropriate proportion of the property's value at the time of redemption, normally less a discount of 20 per cent.
No proposal for a national scheme has been announced.