§ Mr. FearnTo ask the Secretary of State for the Environment (1) if he will bring forward proposals for a scheme to give owner-occupiers the option of converting from mortgage to rent to avoid home repossessions;
(2) if he will make it his policy to introduce a scheme for owner-occupiers who fall behind on mortgage payments to enable them to transfer their mortgages to shared ownership with local authorities.
§ Mr. Yeo[holding answer 26 November 1991]: Local authorities may already acquire property from a defaulting borrower where they are themselves the lender and, if they choose, leave the former owner in place as a tenant. Authorities may also acquire property with a view to disposal including disposal of a shared ownership lease. Authorities may further provide resources to housing associations to enable them to purchase property so that the previous owner remains on shared ownership terms or as a tenant. Details of these arrangements and procedures are currently set out in schedule 3 to the Housing Revenue Account Subsidy Determination 1990.