Social Housing (Hansard, 28 November 1995)

§ Mr. Sutcliffe
To ask the Secretary of State for the Environment what measures he proposes to ensure equality in terms of competition and regulation as between housing associations and the proposed independent social landlords. [2697]

§ Mr. Clappison
All organisations that wish to receive subsidy from the Housing Corporation to provide social housing will be required to meet the same standards of construction, maintenance, management and services to tenants. The corporation will monitor these organisations to see that these standards are delivered, and will have regulatory powers to take action where standards are not being met.

§ Mr. Sutcliffe
To ask the Secretary of State for the Environment what assessment he has made of the proposals from the National Federation of Housing Associations relating to the proceeds from the sale of the Housing Corporation's loan portfolio; and if he will make a statement. [2786]

§ Mr. Gummer
The Government will be making a statement on this matter later this afternoon.

§ Mr. Hargreaves
To ask the Secretary of State for the Environment what plans he has to sell to the private sector the Housing Corporation portfolio of earlier loans to housing associations. [3426]

§ Mr. Curry
Since 1989, housing associations have secured around £5.5 billion of private resources to support housing projects, and a further £3 billion in support of large-scale voluntary transfers of housing from local authorities.
Prior to 1989, housing associations' loan finance was provided by the Housing Corporation with resources borrowed from the national loans fund. There is no reason for public sector bodies to continue to hold these loans, and my right hon. Friends the Secretaries of State for Scotland and for Wales and I have decided in principle that the corporation's portfolio of loans to housing associations in England, and the equivalent lending in Scotland by Scottish Homes and in Wales by Housing for Wales should be sold, subject to detailed investigations of the options for sale and the prospective disposal receipt. We shall shortly be appointing advisers to carry out this investigation.
Sale, if confirmed following investigation, will not affect the financial position of the housing associations concerned, or their tenants, or rents, or the future development programmes of the Housing Corporation, Scottish Homes or Housing for Wales.

§ Dr. Twinn
To ask the Secretary of State for the Environment if he will make a statement on tax relief grant for non-charitable housing associations. [3427]
567W

§ Mr. Curry
The White Paper "Our Future Homes" set out the Government's proposals to enable profit-making companies and other bodies to compete alongside housing associations for funds to support the provision of social housing in England and Wales.
In this context, it would not make sense for non-charitable housing associations to continue to receive tax relief grant, which currently offsets their liability for income and corporation tax. My right hon. Friend the Secretary of State for Wales and I have, therefore, decided that tax relief grant should be discontinued with effect from 1 April 1997, subject to parliamentary approval of the necessary legislation.
The tax position of charitable housing associations will remain unchanged.