Social Rented Housing (Consultation) (Hansard, 19 January 1996)

§ Mr. Curry

The consultation paper set out Government proposals to increase competition in the social rented sector by removing current restrictions on who should be able to compete for Housing Corporation grant or take on transferred local authority housing. It argued that new forms of non-profit landlord should be able to register with the corporation, and that a licensing system should be established to enable profit-making landlords to receive grant and transferred stock. A series of proposals regarding the monitoring and regulation of social housing were put forward, including rent controls and provisions to recoup excessive surpluses. The paper also proposed the establishment of a statutory ombudsman for the independent social rented sector, and sought views on the appropriate approach to determining the standards to which housing schemes must conform.

Two hundred and sixty responses were received. A list of respondents has been placed in the Library of the House. Copies of individual responses may be obtained through the Library. In addition, four responses were submitted on a confidential basis.

These replies have been considered carefully. The Government have decided to proceed at once with proposals to allow new forms of non-profit landlord, such as local housing companies, to register with the Housing Corporation, and to establish a statutorily independent ombudsman. The necessary provisions are contained in the Housing Bill which was published today. The Bill also provides new powers for the Housing Corporation to protect publicly funded stock and tenants' interests in the event of a landlord becoming insolvent.

In order to facilitate further transfers of local authority stock to these and other registered landlords, the Government will adopt a more flexible approach to the size limit for transfers. In future, transfers over the 5,000 dwellings limit will be eligible in exceptional circumstances. My Department intends to issue revised guidance on housing transfers incorporating advice on this and other policy changes.

The Government also intend to take forward its proposals to introduce profit-making landlords to the sector, with the associated controls over rents and surpluses. Because of the urgent need to deal with leasehold issues in a Bill of manageable size, legislation to effect this proposal will be deferred. My Department will consult on draft clauses for these provisions, with a view to including them in future legislation. Given the postponement of legislation on opening up competition on housing association grant to profit-making companies, the Government do not intend to abolish tax relief grant at this stage.

On scheme development standards, the Housing Corporation will retain the present approach for the time being. The Department of Environment and the Housing Corporation are commissioning a study into the feasibility of developing a series of housing quality indicators. A report is expected in May. A further statement on scheme development standards will be made at that time.