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Local Authority Mortgage Debt

Volume 32: debated on Wednesday 24 November 1982

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asked the Secretary of State for the Environment how many local authorities have tendered their debts on house mortgages to the private sector and how much money is involved in the last financial year; what is his estimate for 1982–83 and 1983–84; and if he will make a statement on this practice.

The information sought by my hon. Friend in the first part of his question is not available because local authority returns do not identify how much mortgage redemption arises from particular causes. Our assumptions for both regular repayments and repayments of the whole outstanding balance were £311 million for 1982–83 and are £430 million for 1983–84. I have indicated to local authorities on a number of occasions that the rolling over of their own mortgages into mortgages provided by the private sector is a way in which they can generate significant additional housing capital receipts, thus enabling them to increase their housing capital investment programmes.

£000s DOE (Central

£000s Property Services Agency

1979–801,92636,096
1980–812,87642,280
1981–824,27749,741
1982–834,29367,042

These totals cover a great number of individual assignments and it would not be practicable to provide all the information requested in the question. The following are, however, the main assignments that have been undertaken by firms of accountants or management consultants since 1 April 1981: