Housing Associations: Right to Buy

Baroness Gardner of Parkes Excerpts

Tuesday 9th June 2015 Lords Chamber

Asked by

[Baroness Gardner of Parkes]

To ask Her Majesty’s Government what plans they have to consult Housing Associations, local authorities and the general public before finalising the proposal to extend the right to buy to Housing Association properties.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)]

My Lords, Ministers and senior officials in my department already engage with the housing association sector, local authorities and other key stakeholders, as they do on a continuous basis in relation to key policy issues.

[Baroness Gardner of Parkes (Con)]

Is the Minister aware of the very difficult position of some of those who bought their council flats in the early days, about 30 years ago, for about £10,000 and now find themselves as leaseholders with no income but a small—well, it is not that small—state pension? They now receive bills for more than £12,000 as part of their contribution towards the block. I understand that there are 24 such cases in one estate. How widespread is this situation, and what do the Government intend to do to avoid a similar situation arising if housing-association properties are sold in the same way?

[Baroness Williams of Trafford]

My Lords, I recognise the problem that my noble friend talks about. Recognising the challenges that these leaseholders face, my department introduced a new law in August 2014 that caps the amount that councils can charge leaseholders for repairs to their home. This is called “Flo’s law”. It limits the amount that can be claimed by councils from local-authority leaseholders in a five-year period to £10,000 outside London and £15,000 inside London for government-funded works.