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Rents To Mortgages

Volume 175: debated on Tuesday 3 July 1990

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To ask the Secretary of State for Scotland if a survey has been conducted of the average incomes of individuals or families who have made inquiries or applications for participation in the rents to mortgages scheme; and if he will make a statement.

Scottish Homes conducted a postal survey in April 1990 of 118 applicants for rents to mortgages. Details of income levels of those who responded are given in the tables. A further, larger survey is being undertaken, the results of which are expected to be available this autumn.

Table 1
Net Weekly Income of ApplicantNumberPercentage
Under £5011.5
Over £30123.0
Table 2
Net Weekly Household IncomeNumberPercentage
Over £40123.0

To ask the Secretary of State for Scotland what is the average cost of a home purchased under the rents into mortgages scheme; what is the average discount expected on each home; and what is the geographical spread of inquiries/applications for participation.

The data available are as yet insufficient to provide a meaningful average house value under the rents to mortgages (RTM) scheme. Scottish Homes' initial estimate of house prices, based on experience of right-to-buy sales indicates a market value of houses sold under RTM of £26,000 in the current year.Scottish Homes' survey of early applicants suggests that the average discount entitlement in RTM house sales will be 31 per cent.Inquiries and applications in respect of the RTM scheme have been received from all areas of Scotland but in particular from Lothians and Borders, Renfrew and Inverclyde, Glasgow and central Scotland.

To ask the Secretary of State for Scotland if he will make a statement on the progress of Scottish Homes' rents into mortgages scheme.

Early experience of the rents to mortgages trial scheme is encouraging. More than 1,000 inquiries have been received from eligible tenants, with 154 applications in process and three sales having been completed.The scheme is being closely monitored. Any modification or extension to the scheme which seems desirable in the light of experience will be introduced as soon as practicable.

To ask the Secretary of State for Scotland what recent representations he has received from tenants' groups in Scotland regarding the extension of Scottish Homes' rents into mortgages scheme.

Inquiries have been received from individual tenants about a possible extension to the scheme but no such representations have been submitted by tenant groups.