§ Linda PerhamTo ask the Deputy Prime Minister what measures are in place regarding companies buying homes from former council tenants and then letting or selling them at market prices. [112536]
§ Mr. McNultyThere is nothing to prevent former council tenants from selling the homes that they purchased under the Right to Buy scheme to whomever they wish. They must repay all or part of the discount they received if they resell within three years of buying. The Government's draft Housing Bill, published on 31 March 2003, proposes to extend this period to five years and to change the basis on which discount is to be repaid from the current flat rate to a percentage of the resale value of the property. This will act as a further disincentive to companies that are profiteering from the Right to Buy scheme.