§ Mr. WhittingdaleTo ask the Secretary of State for the Environment whether the Government will support the establishment of a leasehold enfranchisement advisory service.
§ Sir George YoungI am pleased to announce that the Government has approved the application from the Leasehold Reform Co-ordinating Committee for financial assistance to enable the Leasehold Enfranchisement Advisory Service for England and Wales to be established. The Department of the Environment has agreed to make a grant through its special grants programme of £27,575 in 1993–94 and £73,000 in 1994–95. The Welsh Office will also contribute £1,000 in 1994–95. I anticipate that similar amounts will be made available for 1995–96, subject to the satisfactory performance of the service.
In addition, they have received offers of support for the service from private sector organisations worth over £35,000 per annum.
The aim of the agency will be to provide information to the large number of leaseholders whom we anticipate will wish to take advantage of the provisions contained in the Leasehold Reform, Housing and Urban Development Act 1993 which took effect on 1 November. These enable qualifying leaseholders either to purchase jointly the freehold of their flats or to purchase new long leases.
I expect the service to have a very important role to play in advising both landlords and tenants about the necessarily complex procedures involved in exercising these new rights.