Housing: Co-operative Housing

Lord Palmer of Childs Hill Excerpts

Monday 25th April 2016 Lords Chamber

[Viscount Younger of Leckie]

I recognise that, by his own admission, the noble Lord has been in the co-operative movement all his adult life, part of that as a Peer. We recognise that co-operative housing and community land trusts in their various forms play an important role in satisfying the demand for housing. They are very individual and bespoke, and are perhaps more of a challenge to promote one against the other. We will look carefully at a pilot that is going on in Wales before taking any further action, but we otherwise very much promote the idea of co-operatives.

[Lord Palmer of Childs Hill (LD)]

My Lords, since for a housing co-operative to start it needs a building or buildings, otherwise it cannot operate, what are the Government doing to encourage mortgages to be available to such bodies? Without a mortgage, a building cannot be acquired. Will the Government consider guaranteeing or underwriting such mortgages—of course, based as a second charge—on the properties? Have the Government had discussions with those in the field who are giving such mortgages, such as Co-operative & Community Finance, the Co-operative Loan Fund and the Ecology Building Society?

[Viscount Younger of Leckie]

My Lords, we are doing much to expand housing over all of the nation and the noble Lord will know of the different opportunities and tenures that we are promoting. Certainly, it is up to local areas to focus on local co-operatives. As I said earlier, we are providing £60 million to help with this process, particularly in the south-west and Devon.