Oral question asked in the House of Lords, by Lord Carter (Labour). It was answered on Wednesday, 22 March 2006.

Housing: Shared Ownership

Question: My Lords, I thank my noble friend for her Answer, which goes well beyond the usual courtesy. It is extremely good news. We all agree with encouraging home ownership, but there are particular problems in the shared ownership rural housing sector, which the Government have clearly recognised in their decision not to change the policy. Is my noble friend aware that the announcement will be welcomed by the whole rural housing sector, especially the Rural Housing Trust, which has worked hard on the problem?

Answer: My Lords, it is always a pleasure to bring good news to the House, especially via an ex-Chief Whip. I know that the noble Lords, Lord Dixon-Smith and Lord Cameron, have also drawn attention to the issues. I can assure noble Lords that the housing associations will be able to operate in the future using the same criteria and the same judgment that they have always had. In the case of houses, it will be possible to restrict staircasing under the legislation as long as they meet the low-rent test. That means that outside Greater London, as long as the rent charged on any unowned equity throughout the term of the lease is at least £250 a year, staircasing can be restricted on rural exception sites without the risk of enfranchisement. As noble Lords know, there has never been a problem with flats. I can also reassure noble Lords that the Government have no plans to remove the low-rent test for housing associations; they may continue to rely on it in the future.

Secondary information

Type: Oral question
Reference: 680 c238-9
Session: 2005-06
Oral question type: 1st Supplementary
Chamber / Committee: House of Lords chamber
Subjects: Housing Housing associations Low incomes Rural areas Shared ownership schemes