HOUSE PURCHASE DEPARTMENT:
THE ASSISTED HOUSE PURCHASE SCHEME
(continued)
Item 5.
Attention was drawn to the fact that in certain cases mortgagors had sub-let part of the property in order to assist
in the repayments under the mortgage. The Conference considered that any action in the matter must be governed entirely by the circumstances
of the individual case which would come before the Bank Committee in the usual way.
Items Nos 6 and 7.
____________________________
The developments incurring after the
above conference were the subject of the next meeting:
MINUTES OF FOURTH CONFERENCE CONVENED BY THE LORD MAYOR OF REPRESENTATIVES OF THE BANK, ESTATES, FINANCE AND PUBLIC WORKS AND TOWN PLANNING COMMITTEES HELD ON FRIDAY, MARCH 16TH, 1928, AT THE COUNCIL HOUSE
BIRMINGHAM.
PRESENT:
The Rt Hon The Lord Mayor (Alderman A H James, CBE, JP) In the Chair
Alderman Sir Percival Bower, MBE, JP,
Councillor Cooper & Mr J P Hilton (General Manager) Representing the Bank Committee
Councillor Kenning and Mr Wallace Smith (General
Manager) Representing the Estates Committee
Alderman Gregory and Mr H H Humphries (City Surveyor) Representing the Public Works &
Town Planning Committee
The Town Clerk
Mr H C Wallond - representing the City Treasurer
The Lord Mayor presented the following
Statement indicating the developments which had taken place since the last Conference in regard to the Pype Hayes houses:
As
a result of the conference which took place on the 14th February and at which representatives of the Protest Committee were received,
three alternatives were given to the owner-occupiers in arrears with their payments due to the Municipal Bank. These alternatives
were subsequently communicated to all owner-occupiers on the estate.
Shortly the alternatives were:
1. To remain in possession
with the benefit of the Corporation's guarantee;
2. To sell the existing house and transfer to another Corporation house as a purchaser;
3.
To sell the existing house, the owner finding his owner-occupiers alternative accommodation.
In order to dovetail the offer made
by Mr Boswell, which was communicated to the conference by the Chairman of the Public Works Committee, with the offers to be made
to the individual owner-occupiers of the Corporation houses at present available for sale to them. This information was duly communicated
and as Mr Boswell's offer entailed giving vacant possession on completion of the purchase by him, a time limit was fixed for the transactions
to be completed by the 31st instant.
On the 27th ultimo Messrs Duggan & Elton, writing on behalf of a number of Pype Hayes
owner-occupiers, asked those who wished to purchase other Corporation houses might be allowed to remain in their present accommodation
until the Birches Green houses were ready, and that those who wished to adopt option No 3 might be allowed reasonable time to find
other premises.
The City Surveyor accordingly arranged an interview with Mr Boswell to ascertain whether an extension of time
could be given to enable the owner-occupiers to find their own accommodation or to transfer to the Birches Green Estate. Mr Boswell
met the Deputy Chairman of the Public Works Committee and the City Surveyor on the 3rd instant and he then stated definitely that
he was not prepared to give any increase in the time limit so far as he was concerned. (Mr Boswell also asked to be supplied with
a list of the houses which it was proposed he should take over. Such a list was subsequently prepared and was sent to him on the 6th
instant).
On the same day (6th instant) the Estates Committee considered the question of offering alternative accommodation for
the owner-occupiers desiring to transfer to Birches Green and decided that they would be prepared to give such temporary accommodation
at the hutments at Castle Bromwich. On the 7th instant the Town Clerk accordingly communicated with Messrs Duggan & Elton and
the owner-occupiers concerned individually offering the alternative accommodation for owner-occupiers desiring to wait for a Birches
Green house, and stating that the time limit for the possession of the present houses to be given up could not be extended beyond
the end of the month.
On the 12th instant the Town Clerk received, through Messrs Duggan & Elton, a number of signed forms
of acceptance of proposal No 3, but the letter accompanying them stated:
"As to the Forms No 2 in our possession, we regret we
are, as yet, unable to send them in. The members are seriously concerned about the Hutments at Castle Bromwich, and we were informed
that some of these have already been condemned by the Medical Officer of Health, and that dampness would seriously damage furniture.
We were also asked to point out that Tenants in Pype Hayes had been, in fact, accommodated on Pype Hayes, and it was thought that
owner-occupiers ought, at least, to have similar treatment.
"These members desire us to again press for a conference with the
Lord Mayor in the hope of getting a solution mutually satisfactory".
As a consequence of the above letter, the Town Clerk conferred
with the Lord Mayor who decided to summon a further meeting of this conference.
After the conference was summoned a further letter
was received from Mr Boswell to the effect that he was not prepared to purchase such a large number of houses as those involved and
raising a number of points.
Note. At their meeting on the 8th instant the Public Works Committee authorised the Town Clerk to
accept the surrender of any of the houses in respect of which offers had been accepted, and where the owners, having complied with
the conditions laid down by the Corporation, required an early completion of the sale of the present house.
The following questions
have now to be decided:
1. In view of the attitude now adopted by Mr Boswell, what steps are to be taken in those cases where
proposals 2 and 3 have been accepted?
2. As it appears likely that Mr Boswell will take over only a few houses, should the time limit
fixed for the completion of the transactions, namely the 31st instant, be waived to the extent of allowing persons desirous of purchasing
Birches Green houses to remain until those houses are ready?
3. Should the owner-occupiers who have accepted proposal No 3 similarly
be allowed to remain in occupation as owner-occupiers until they have found alternative accommodation?
4. In some cases where
owner-occupiers have accepted other Corporation houses it appears that they have done so because they have been told that Birches
Green houses were not available. Should these owner-occupiers be now offered a Birches Green house so as to place them on the same
footing as the class who have refused to accept houses other than a Birches Green house?
The City Surveyor then submitted the
following a letter dated 13th March 1928, which he had received from Mr Boswell (the Contractor) from which it appeared that he was
not prepared to take over the houses as originally stated, and the City Surveyor also read his proposed reply thereto, which was approved
by the Conference.
The City Surveyor stated that he proposed to interview Mr Boswell to ascertain whether he would reconsider
his attitude, but informed the Conference that a House Building Sub-Committee of the Public Works Committee had expressed the view
that any of the houses in question which Mr Boswell would not repurchase should be taken over by the Corporation with a view to letting
after any defects had been remedied.
The Conference proceeded to consider the questions raised in the Statement presented by
the Lord Mayor.
The Town Clerk pointed out that the Mortgagors in question on the Pype Hayes Estate had been informed that they
must quit the premises by the 31st March, but the only reason for fixing this date was that Mr Boswell had made it the condition in
his arrangement to purchase. Should it be necessary for the Corporation to take over the houses, and having regard to the alternative
accommodation offered in hutments at Castle Bromwich, it was a matter for the Conference to consider whether it would not be desirable
to allow an extension of time on payment of arrears and subject to allowing the City Surveyor access to execute any necessary repairs.
With
regard to the Mortgagors who were finding their own accommodation, Mr Duggan in his letter had asked that the Mortgagors should be
allowed to remain in occupation of their houses for a reasonable time on the understanding that if at the end of the period allowed
they were unable to find accommodation they would be prepared to go into lodgings.
Sir Percival Bower outlined the position so
far as the Bank were concerned and stated that at the 25th February there were 72 Mortgagors on the Pype Hayes Estate in arrear, the
amount involved being £1378. This number had now been reduced to 44 and the arrears at present amounted to £913. 11. 7.
With
regard to Question No 1 (Steps to be taken where proposals 2 and 3 have been accepted) the financial effect having been considered,
the Conference decided to recommend to the Committees concerned that such of the houses in question as Mr Boswell would not agree
to purchase should be taken over by the Corporation and that the Mortgages should be discharged.
The Conference, having considered
the other questions involved, came to the following decisions:
(1) That, subject to the conditions hereinafter mentioned, owner-occupiers
accepting Proposal No 2 but desiring houses on the Birches Green Estate, shall not be required to sell and give vacant possession
of their present houses until the Corporation are in a position to offer new brick built houses at Birches Green, this concession
to be made either in the event of the houses being taken over by Mr Boswell or by the Corporation.
This concession to be subject
to the conditions:
(a) That arrears, if any, under the owner-occupiers' present mortgages to the Municipal Bank and ground rent
and insurance are paid off on or before the 31st instant and all future payments promptly made, and,
(b) That the Corporation
shall be permitted to carry out repairs, where such a course is necessary, to preserve the structure of the building.
(2) That,
in order to afford owner-occupiers accepting Proposal No 3 further opportunity of securing other accommodation where the same has
not already been obtained, the period within which such owner-occupiers are to sell and give vacant possession of their present houses
(whether the same are to be purchased by Mr Boswell or the Corporation) be extended to the 30th April, subject however to the conditions
set out above with regard to owner-occupiers desiring to purchase houses at Birches Green.
(3) That, in the event of the Mortgagors
concerned in Proposals Nos 2 and 3 above mentioned not paying off their arrears by the 31st March, action for possession of the premises
and recovery of arrears should be taken forthwith by the Town Clerk in accordance with the instructions already given by the Bank
Committee.
(4) That in those cases where the acceptors of Proposal No 2 although desiring houses on the Birches Green Estate,
had agreed to take Corporation Houses elsewhere on being informed that Birches Green Houses were not available, the Lord Mayor be
authorised to deal with questions arising therefrom, with power to arrange for houses to be provided on the Birches Green Estate if
desired and the circumstances so justify.
(5) The Conference were informed that there were certain special cases which were receiving
consideration and upon which reports would be submitted to the Committees concerned in due course.
PARTICULARS OF ACCEPTANCES
OF THE PROPOSALS
OF THE CORPORATION.
___________________________________
|
Acceptances
of proposal No 1, (to accept the Corporation guarantee and remain in possession) |
23 |
|
|
|
|
Acceptances of proposal
No 2. (to sell and purchase new Corporation house) |
19 |
|
|
|
|
Acceptance of proposal No 3, (to sell present house
and find own accommodation) *(possession of 7 of these houses has already been given to the Corporation.) |
*43 |
|
|
|
|
Cases
where owner-occupiers are prepared only to accept the Birches Green house and who have withheld acceptance of proposal
No 2. |
27 |
|
|
|
|
Special Cases |
7 |
|
|
|
|
TOTAL |
121 |
[NOTE: the Minutes give no explanation as to why the total does not equal the sum of the individual cases listed]
A report was made by the Bank to the City Council on March 31st
1928 relating to outstanding loans on municipal houses
|
Year ended March 31st |
No of mortgages arranged |
Amount advanced |
No of mortgages in
force at end of year |
Amount outstanding at end of year |
|
|
|
£ |
|
£. s. d. |
|
1924 |
158 |
41,595 |
154 |
39,532 2 2 |
|
1925 |
424 |
117,460 |
567 |
145,762 14 11 |
|
1926 |
800 |
263,463 |
1,322 |
380,565 17 6 |
|
1927 |
1,007 |
357,997 |
2,202 |
673,278 10 7 |
|
1928 |
261 |
89,877 |
2,272 |
663,872 17 1 |
|
|
2,650 |
870,392 |
|
|
As the Council are aware, the Bank's
liability in respect of loans on municipal houses only extends to 80 per cent. of the valuation obtained by the Bank, the Finance
Committee guaranteeing the excess amount loaned under the low deposit scheme sanctioned by the Council. The extent of the Finance
Committee's guarantee at the end of the financial year amounted to £152,887.
The monthly repayments under the terms of the mortgages
have been maintained, on the whole, at a satisfactory level, although some difficulty was experienced during the year in respect of
mortgagors of municipal houses on the Pype Hayes Estate. As a result of the action taken by the Lord Mayor, and with the hearty co-operation
of other Committees interested, this difficulty has been eased, and your Committee believe that the arrangements made with the individual
mortgagors will result in giving general satisfaction. Cases of hardship arising from unemployment or serious illness have been dealt
with sympathetically, and your Committee have permitted modified repayments to be made when the circumstances justified such a course.
On the other hand, a few mortgagors have shown an inclination to ignore their obligations, and these have been dealt with in a firm
manner. In cases where your Committee felt it necessary to take extreme measures, the whole of the amounts due have been recovered.
The
practice instituted some years ago of converting progressive mortgages into Bank mortgages has been continued during the year. These
applications are approved by the Public Works and Town Planning Committee, and progressive advances made by the Finance Committee.
The repayment of the advance is dealt with by the Bank, acting as agent for the Finance Committee. When the final advance under the
progressive mortgage has been made, steps are taken to discharge the progressive mortgage and to create a Bank mortgage. By this process
the advances made by the Finance Committee returns to the City's funds. During the year 18 conversions took place, and at the end
of the financial year 10 progressive mortgages were being dealt with by the Bank.