§ Mr. Battle
To ask the Secretary of State for the Environment what guidance has been offered to local authorities who wish to purchase the homes of mortgagees facing repossession as a means to enable the mortgagees to remain in their homes as tenants.
§ Mr. Yeo
[holding answer 11 November 1991]: Long-standing rules have enabled local authorities to acquire property from a defaulting borrower where they are themselves the lender and, if they choose, leave the former owner in place as a tenant. Authorities also acquire property with a view to disposal including disposal of a shared ownership lease. Details of these rules are currently set out in schedule 3 to the Housing Revenue Account Subsidy Determination 1990. They may also provide resources to housing associations to enable them to purchase homes to enable the previous owner to remain on shared ownership terms or as a tenant.