Vol. 435 No. 1
119 Mr. G. Mitchell asked the Minister for the Environment if his attention has been drawn to the fact that the regulations set out in the 1993 local authority house purchase scheme is militating against the poorest members of society, many of whom are being refused the opportunity to purchase their homes because their incomes are considered inadequate; and if he will make a statement on the matter.
Under the 1993 tenant purchase scheme, tenants of local authority dwellings, with certain limited exceptions, are entitled to purchase their dwellings. Substantial discounts, from a minimum of £3,000 up to 30 per cent of the value of the dwelling, are provided in order to bring purchase within the reach of tenants. As in the case of previous purchase schemes, only those who can afford the repayments will be in a position to purchase. Mortgage loans to finance the full nett purchase price, that is, after discounts and allowances, may be obtained from either the local authority or a commercial mortgage lender. However, any tenant who does not obtain a loan from a commercial lender may apply to the local authority, and it is a matter for the authority in each case to decide if the applicant has the means of making the loan repayments.
