§ Mr. RaynsfordTo ask the Secretary of State for the Environment if he will give his latest estimate of the number of people likely to lose their homes in England in 1992 as a consequence of mortgage arrears and repossession.
§ Mr. Baldry[holding answer 13 May 1992]: My right hon. Friend the Chancellor of the Exchequer announced on 19 December 1991 a package of measures agreed with the Council of Mortgage Lenders to reduce the number of repossessions. The Government undertook to legislate for the direct payment to lenders of the mortgage interest element of income support. My right hon. Friend also announced the lifting of stamp duty on transactions up to £250,000 for a period of eight months. The Government enacted legislation to implement those measures before the general election.
As part of the December package, the CML members undertook to advance £750 million to mortgage rescue schemes. Since then, 10 lenders have announced details of their schemes, including better counselling and arrears management to enable borrowers to remain in their own homes; lower interest rates for a specified period for homeowners in difficulties; reduced mortgage payments in return for the lender's taking a share in the equity; and mortgage-to-rent schemes. The combined effect of the measures taken by the Government and lenders will be to reduce the number of repossessions in 1992 and restore confidence to the housing market.
My right hon. Friends the Chancellor of the Exchequer and the Secretary of State for the Environment will be meeting the CML to review progress on 2 June.
239WThe CML figures of arrears and possessions for the first half of this year are due to be published in the middle of August.