asked the Minister for Local Government if he will state the text of a circular letter dated 9th March, 1951, addressed to housing authorities regarding purchase annuities.
Written Answers. - House Purchase Annuities.
35.
The text of the circular letter in question is as follows:—
COTTAGE-PURCHASE SCHEMES.
"I am directed by the Minister for Local Government to state that he has under consideration the question of the extent to which tenants of labourers cottages have availed themselves of the provisions of the Labourers Act, 1936, relating to tenant purchase. It has been ascertained that up to September, 1950, purchase schemes were made by housing authorities in respect of 56,900 cottages, approximately. Applications for purchase were received from 14,227 tenants, but only 8,209 cottages were vested in tenants in the period under review. These results fall considerably short of expectations, notwithstanding the general desire on the part of housing authorities to exercise the provisions of the Act to the fullest extent possible.
The Minister has received representations, including a Resolution from the County Councils General Council, in favour of a reduction in the existing annuities charged to applicants for tenant-purchase schemes under the Act. The present terminable annuity is fixed at 75 per cent of the rent paid by the tenant (exclusive of rates) at the date of vesting. In order to accelerate operations under the Act the Minister has decided to accede to the representations in favour of a revision of the basis on which the terminable annuity is fixed and he has accordingly decided that, in future, the amount of the terminable annuity which he will be prepared to approve, in normal cases, in respect of each cottage and plot will be 50 per cent of the rent, exclusive of rates. The Department's circular letter of the 30th March, 1937 (circular H.B. 46/1937) dealing generally with the procedure and conditions to be observed in preparing cottage purchase schemes may, therefore, be read as amended accordingly.
I am to request that the revised conditions be brought to the notice of all existing tenants whose cottages are not yet vested. It should be made clear to the tenants that the accepance by them of the tenant-purchase facilities will result in an immediate reduction of 50 per cent of their existing rents, and that the annuity (or rent) to be charged as a tenant-purchaser will remain unaltered during the full repayment period. They will thus be fully safeguarded against any increase in rents which the Council may from time to time propose to put into operation in respect of unvested cottages. It is suggested that the rents charged as at the date of this circular letter should form the basis of the annuity calculation in respect of existing tenants who submit proposals for tenant-purchase.
A report on the extent to which the terms of this circular letter have induced an increase in the number of applications for vesting should be furnished to this Department as soon as possible after the 30th June next and at regular half-yearly periods thereafter."