§ Mr. DrewTo ask the Secretary of State for the Environment, Transport and the Regions what plans he has to change the low cost home ownership incentive schemes offered by registered social landlords and to enable more registered social landlords to offer flexible tenure schemes. [54622]
§ Ms ArmstrongWe plan to simplify the range of low cost home ownership schemes available through Registered Social Landlords (RSLs) in England by offering a new scheme based on the Homebuy scheme that has run successfully in Wales since 1994.
Qualifying tenants will receive interest-free equity loans to meet 25% of the cost of buying a home of their own. Funding for the scheme will be provided by the Housing Corporation, and RSLs will be able to bid for funds from their Approved Development Programme (ADP).
Homebuy will replace two existing schemes, the Tenants Incentive Scheme and Do-It-Yourself Shared Ownership. It will open to RSL tenants, those nominated from the local authority waiting list who would otherwise receive permanent social housing and local authority tenants, subject to appropriate eligibility rules.
In common with the two schemes it replaced Homebuy will be available only in areas where the scheme can help relieve a shortage of social housing by assisting tenants or those on the waiting list into home ownership.
Homebuy will not normally be offered in areas where there is no shortage of social housing. Support through the ADP for the development and sale of dwellings by RSLs on shared ownership terms will continue.
I believe that Homebuy will prove to be an attractive scheme for tenants, and I have asked the Housing Corporation to consult interested parties on detailed proposals for the new scheme. I will be laying a Statutory Instrument before the House in due course to add Homebuy to the permitted purposes of RSLs.
418WWe also plan to give RSLs greater scope to offer flexible tenure schemes to help households who have bought on shared ownership terms and who face repossession because of a change in their financial circumstances. Working within rules set by the Housing Corporation RSLs will be allowed to use recycled Social Housing Grant to buy back from shared owners some or all of the equity of their property.
Flexible tenure schemes are already offered by a small number of RSLs and enabling more to do so will be an important step in avoiding homelessness and maintaining stable communities. I have also asked the Housing Corporation to consult on detailed proposals for this new measure.