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Written question asked by Lord Pickles (Conservative) on Tuesday, 19 June 2007, in the House of Commons. It was due for an answer on Thursday, 21 June 2007. It was answered by Yvette Cooper (Labour) on Monday, 3 September 2007 on behalf of the Department for Communities and Local Government.

Equity Sharing: Sales

Question
To ask the Secretary of State for Communities and Local Government what (a) financial and (b) other incentives (i) Open Market Homebuy agents, (ii) New Build Homebuy agents and (iii) Social Homebuy agents received from selling an equity stake; and whether the level of the incentives varies according to the size of the equity stake purchased by the householder.
Answer

The term ‘HomeBuy Agents’ applies to those registered social landlords that have been appointed by the Housing Corporation to provide a ‘One Stop Shop’ for all low cost home ownership products funded by the Affordable Housing Programme. The introduction of HomeBuy Agents across the country in April 2006 has streamlined the application process for applicants and provided strict eligibility and affordability checks to ensure value for money for the public purse.The financial incentives for registered social landlords to offer our New Build, Open Market and Social HomeBuy products are:"The availability of Government grant to:""cover the cost of the Government’s equity loan under Open Market HomeBuy;""cover the discount offered under Social HomeBuy;""contribute to the cost of developing New Build HomeBuy homes; and""assist with any associated administrative costs.""The receipts generated by the sale of shares under New Build and Social HomeBuy. The level of this incentive will vary depending on the size of the share sold. The higher the share sold, the higher the receipt. The original grant must be recycled to provide more affordable homes, the remaining receipt must only be spent on permitted activities.""The equity appreciation that could be earned on their stake in any low cost home ownership homes they provide.""The rental income generated by shared ownership sales under New Build HomeBuy and Social Homebuy. Again the level of ""this incentive will vary according to the size of share sold. The higher the share sold, the lower the rental income.""The freedom for landlords (this includes local authorities) offering Social HomeBuy to retain receipts for reinvestment in affordable housing to meet current housing needs.""The availability of alternative sources of subsidy for New Build HomeBuy including on site developer contributions through planning obligations and financial or land contributions from local authorities."Other incentives include:"The ability to introduce tenure mix on estates and contribute to sustainable communities through New Build HomeBuy and Social HomeBuy sales."

Secondary information

Type
Written question
Reference
145162; 463 c1652-3W
Session
2006-07
Subjects
Housing Finance Low incomes Sales Equity sharing Affordable housing
Link
View this Written question on www.publications.parliament.uk