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Mercury investigation into council house claims

The Leicester Mercury has prompted the Housing Minister to take action after allegations that some salesmen were scaring council house tenants into buying their homes.

The Mercury special investigation claimed that three firms were canvassing tenants to tell them their right to buy could end if Labour wins the next General Election.

Housing Minister Nick Raynsford has now promised that his department will investigate.

The newspaper said that the firms were offering to act as a “middlemen”, to help tenants buy their homes under the Right to Buy policy, often scooping an arrangement fee which is then added on to the mortgage.

Mercury reporters posed as council tenants and then confronted one of the companies involved.

Afterwards, Mr Raynsford told the Mercury: “We are not ending council housing.

“Nor are we proposing any significant changes to the Right to Buy scheme.

“Council tenants who want to buy their homes will continue to be able to do so.”

A spokesman for the Department for the Environment, Transport and the Regions said: “If there is evidence these companies have been making these claims the DETR will prosecute.”

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