Housing

HC Deb 05 March 1991 vol 187 cc140-6W

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will publish the detailed burdens and conditions to be built into the title deeds of the heritable property disposed of under the voluntary disposals of former Scottish Special Housing Association housing stock in the Borders region in terms of the Housing (Scotland) Act 1988; and what mechanisms and sanctions would be available to Ministers against any future private sector landlords succeeding to the ownership of the stock.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: These properties are owned by Scottish Homes and it is a matter for the current owner to determine, on the basis of its own legal advice, which, if any, burdens and conditions should be imposed on the stock to be transferred. As part of the process leading to the ballot these burdens and conditions would be made clear to tenants.

There is no provision in statute which enables Ministers to take any sanction against any future private sector landlords succeeding to the ownership of the stock.

Mr. Kirkwood

To ask the Secretary of State for Scotland if Scottish Homes has discretionary power to allow two or more options of private sector landlords to proceed to the ballot stage for consideration by tenants under the procedures laid down for the voluntary disposal of former Scottish Special Housing Association housing stock in terms of the Housing (Scotland) Act 1988.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: In the guidance which my right hon. Friend has given to Scottish Homes, there is nothing which prevents the agency from putting forward two or more options to the ballot stage for consideration by tenants. Scottish Homes procedures of October 1989 allow proposals which have been accepted after initial screening to be processed until they have been rejected by Scottish Homes or by evidence of the ballot of tenants or by the decision of my right hon. Friend.

In practice, tenants will have an opportunity before ballot stage to seek advice from advisers chosen by themselves and financed by Scottish Homes. At each ballot only one proposal for change will be put to the tenants. Where a majority of tenants vote against the proposal they will have the option of remaining as tenants of Scottish Homes.

Mr. Kirkwood

To ask the Secretary of State for Scotland under what circumstances he would give consent to public sector housing authorities in rural areas, to (i) seek to factor former Scottish Special Housing Association housing stock and (ii) to make bids to acquire former Scottish Special Housing Association housing stock under the provisions for voluntary disposal of housing stock under the Housing (Scotland) Act 1988.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: No guidance has been issued on which bodies would be acceptable as factors for Scottish Homes stock. Management arrangements are essentially matters for the landlord, in the first instance, and do not of themselves require the approval of my right hon. Friend.

As indicated in his recent guidance to Scottish Homes, my right hon. Friend would be willing to consider a recommendation from that agency for a disposal to a local authority where Scottish Homes took the view that there were special circumstances relating to those particular houses such that the disposal would not compromise Ministers and Scottish Homes objective of promoting diversity of choice in housing. I would not wish to prejudge the precise circumstances in which that would be the case, but would expect that these would rarely arise.

Mr. Kirkwood

To ask the Secretary of State for Scotland (1) what is the recommended timescale to allow the published procedures to be carried out for each phase of the voluntary disposal of former Scottish Special Housing Association housing stock by Scottish Homes in the Border region;

(2) if he will delay stage 3 of the prescribed process for considering voluntary disposals of housing stock under the Housing (Scotland) Act 1988 in circumstances where a private sector landlord who entered the bidding at stage 2 of the procedure argues that insufficient time has been allowed to complete their detailed application.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: No. The procedures published by Scottish Homes in October 1989 indicated that the evaluation of any proposals should be completed within three months of the proposals being accepted after the initial screening stage. This period should include evaluation within Scottish Homes and any associated negotiation with the prospective new landlord up to the ballot stage.

However, since the publication of those procedures my right hon. Friend has issued additional guidance to Scottish Homes on the handling of the current proposals. I understand that Scottish Homes accepts that the period for processing proposals requires to be reviewed and extended. I will ask Scottish Homes to make public the revised timetable for the proposals in the Borders.

Mr. Kirkwood

To ask the Secretary of State for Scotland (1) if he will require Scottish Homes to publish the names of all unsuccessful bids made by private sector landlords to acquire former Scottish Special Housing Association housing stock in the Borders at the end of stage 2 of the procedure for the voluntary disposal of stock and prior to the tenants being balloted;

(2) if he will require Scottish Homes to publish a summary statement of reasons for arriving at conclusions, whether positive or negative, in any proposals submitted by any private sector landlords applying under the provisions of the Housing (Scotland) Act 1988 to acquire former Scottish Special Housing Association housing stock.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: No. Without the specific authority of the bidders concerned it would be inappropriate to publish reasons for arriving at conclusions without breaching the bidders' commercial confidentiality.

However, Scottish Homes published procedures set out the requirement that tenants affected by particular proposals must be advised of the proposal as soon as the board have approved the Sub-Committee's recommendation to follow the initial screening stage with detailed evaluation. At that time a press release will be made by Scottish Homes. If the proposal is rejected at the initial screening stage, the regional director of Scottish Homes will consider whether there is a requirement to provide any information to tenants at that time.

Mr. Kirkwood

To ask the Secretary of State for Scotland what steps he proposes to oblige Scottish Homes to undertake to ensure that the private sector landlords who seek to be considered as bidders for the voluntary disposal of former Scottish Special Housing Association housing stock in the Borders at the end of stage 2 of the prescribed procedures are not disadvantaged in any way relative to the party whose initial proposal triggered the process of voluntary disposal under the Housing (Scotland) Act 1988.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: The procedures published by Scottish Homes specify the range of information to be provided to all prospective purchasers to facilitate their preparation of formal proposals. These procedures also provide that all proposals will be assessed on the same basis and that all proposals which have been accepted after initial screening will be processed until they have been rejected by Scottish Homes, or by evidence of the ballot of tenants or by the decision of the Secretary of State.

I look to Scottish Homes to ensure that all prospective purchasers have adequate time to prepare their proposals in line with the guidance which my right hon. Friend has issued that fair and proper competition should be undertaken whenever possible.

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will commission independent consultants to assess any proposals submitted by any private sector landlords applying under the provisions of the Housing (Scotland) Act 1988 to acquire former Scottish Special Housing Association housing stock.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: No. Assessment of individual proposals is a matter for Scottish Homes to consider, in terms of its published procedures for considering voluntary disposals of stock, with such assistance as it considers necessary. My right hon. Friend will assess any proposals for disposal which are submitted for his consent, with such assistance as he considers necessary, and will withhold his consent if he is not satisfied that the interests of the tenant have been fully protected.

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will list those areas of housing policy which he would expect Scottish Homes to raise with local statutory housing authorities as a consequence of proposals being submitted by any private sector landlords applying under the provisions of the Housing (Scotland) Act 1988 to acquire former Scottish Special Housing Association housing stock located in the local authority area.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: In accordance with the guidance which was issued to Scottish Homes in February 1989, in putting forward any proposals for my right hon. Friend's consent, the agency should draw attention to any impact on the local authority's interest and their capacity to meet their statutory obligations. In particular, the impact should be identified on the authority's duties towards those accepted as homeless under the "Homeless Persons" provisions in part II of the Housing (Scotland) Act 1987; and under section 36 of Land Compensation (Scotland) Act 1973. The impact of any proposal can best be identified by consultation with the authority concerned, taking into account any current or future provision of housing agreed between Scottish Homes and the authority.

Mr. Kirkwood

To ask the Secretary of State for Scotland what safeguards will be required by him to protect the interests of tenants of any private sector landlord who acquires housing stock under the provisions of the Housing (Scotland) Act 1988 and who subsequently is made bankrupt or goes into liquidation.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: Details of which, if any, safeguards are required to be written into any conditions of disposals are presently being considered by Scottish Homes.

I will ask Scottish Homes to make public its decisions on this matter.

Mr. Kirkwood

To ask the Secretary of State for Scotland what regard to local income levels and economic circumstances has to be paid by private sector landlords who have acquired housing stock under the voluntary disposals procedures under the provisions of the Housing (Scotland) Act 1988 when setting future levels of rent.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: In terms of Scottish Homes published procedures, the rental proposals for the property will form a part of Scottish Homes assessment of the overall proposal. And it is the overall proposal which will be put to tenants in any ballot. Future rental increases will be determined by the provisions of the tenancy agreement or will be subject to the arrangements for rental increases under assured tenancies under the provisions of sections 24 and 25 of the Housing (Scotland) Act 1988.

Mr. Kirkwood

To ask the Secretary of State for Scotland if he will make a statement on what instructions he would give to Scottish Homes in the event that he refuses to transfer any of the former Scottish Special Housing Association housing stock in the Borders region to any private sector landlord, in terms of the future factoring arrangements on expiry of the existing contractual arrangements.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: Factoring and management arrangements are essentially landlord responsibilities and as such fall to be dealt with by Scottish Homes itself.

The financial memorandum which sets out the arrangements under which grant in aid is payable to Scottish Homes specifies that value for money should be ensured through economy, efficiency and effectiveness in the management of resources and that financial considerations should be borne in mind in all transactions.

The need for further guidance will be kept under review.

Mr. Kirkwood

To ask the Secretary of State for Scotland when he expects to be able to make public the system of valuation to be used when considering the transfer of former Scottish Special Housing Association housing stock in the Borders region to private sector landlords under the provisions of the Housing (Scotland) Act 1988.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: It is intended that the valuation system to be adopted in any large-scale voluntary transfer of housing stock will be that the houses will be valued on the basis of open market value subject to existing tenancies with account being taken of the condition of the stock.

The district valuer will be invited to assess the market value of the stock and this valuation will subsequently be used as a benchmark against which final decisions will be taken.

Mr. Kirkwood

To ask the Secretary of State for Scotland in what circumstances he would consider allowing the transfer of former Scottish Special Housing Association housing stock in the Borders region to private sector landlords under the provisions of the Housing (Scotland) Act 1988 at a transfer price which was below the district valuer's assessment of its market value.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: Transfer at less than the district valuer's valuation would not normally be acceptable. However, Scottish Homes in agreeing to the terms of a sale may impose conditions on the tenancies which will require financial support to be given to the landlord. Scottish Homes procedures allow for such financial support to be given.

Mr. Kirkwood

To ask the Secretary of State for Scotland what guidance he has given to Scottish Homes on the procedures to be observed when disposing of amenity land and other open spaces unrelated to housing; and whether such amenity space will form any part of any proposal made by a private sector landlord bidding for former Scottish Special Housing Association housing stock in the Borders region.

Lord James Douglas-Hamilton

[holding answer 4 March 1991]: The disposal of surplus land by Scottish Homes is governed by the consent of my right hon. Friend and in accordance with the procedures applying to the disposal of land by Departmental public bodies as set out in the paper issued by the Scottish Office in August 1984.

In accordance with Scottish Homes, published procedures on the consideration of voluntary disposals of stock, planned open space in housing developments, which is proposed should be transferred with the properties, should be identified on an appropriate plan of the proposed acquisition. It will be subject to valuation by the district valuer. The procedures require that arrangements for the maintenance of the open space, be determined, identifying how the costs are to be met and apportioned since, in principle, landlords will be expected to assume this responsibility unless there are agreed arrangements to the contrary.