§ 44. Mr. Frank Allaunasked the Secretary of State for the Environment whether he will seek powers to prevent the recent practice of property companies keeping flats empty and refusing to register them until the Government's proposals for higher rents become law, in particular that Clause allowing landlords to agree rents privately with new tenants.
§ Mr. ChannonI am not aware of such practices, but if the hon. Member will send me details, including the areas where they are happening, I shall study them.
§ Mr. AllaunIs the Minister aware that I can send him evidence that this is being done by such large companies as the Freshwater Group and that they have said that they will do this? Is it not obvious, in view of the housing shortage, that many landlords will take advantage of this Clause in the Bill by charging exorbitant rents to the highest bidders for empty flats?
§ Mr. ChannonIf indeed there is that evidence, these people are very misguided, because the Bill has a different effect from that which the hon. Gentleman thinks it has. The situation will be that even if there is an agreement, the tenant at any time will have the right to go to the rent officer; his security of tenure will remain; and if there is a joint application made to register a rent, the rent officer need not necessarily register the rent put to him, but will register what he considers a fair rent.
§ Mr. AllaunBut is the Minister aware that these landlords get their tenants to sign a document saying that they regard their rent as a fair rent, so that they will have very little chance when they go before the rent officer, and so will not be likely to go?
§ Mr. ChannonEven if that were to happen, it would still not make any difference. Rent officers must register fair rents, and there are many cases in which a rent officer has refused to register a rent even when it has been jointly submitted by landlord and tenant.