Small Houses and Cottages (Great Britain). (Hansard, 15 January 1913)

§ 38. Mr. ROYDS
asked the Chancellor of the Exchequer the result of his inquiries into the cause of the increase in the number of small houses and cottages in Great Britain having fallen in the year 1910–11 to 10,651, as against increases in the year 1905–6 of 112,838, and in the four succeeding years of an annual average of over 80,000; and, in view of the urgency of the housing problem, what action he proposes to take?

§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)
As the result of further inquiry I am satisfied that the fall in the rate of increase in the numbers of small houses is in the main due to the revision of the assessments in 1910–11. The periodical revaluation invariably shows a similar fall in the case of small houses owing to the transfer to higher classes of houses that have appreciated in value in the interval, and the deletion of duplicate entries relating to demolished or reconstructed properties. This view is confirmed by the fact that the figures for 1911–12 so far as they are available, point to an increase for that year at least as great as in any of the four years prior to 1910–11.

§ Mr. ROYDS
Is the right hon. Gentleman aware that on the last occasion (1903–4) of a re-valuation; when there was a drop in the number of new houses erected, 90,000 more houses were built than was the case in 1910–11?

§ Mr. LLOYD GEORGE
The information I have got from the Inland Revenue is that periodical valuations invariably show a drop of a similar character.

§ Mr. ROYDS
Has the right hon. Gentleman made inquiries from builders erecting this class of house, and is he aware that their unanimous opinion is that the drop was caused by the shock to credit and withdrawal of capital consequent on the passing of the People's Budget?

§ Mr. LLOYD GEORGE
On the contrary, as I reminded the hon. Gentleman many times before, the drop in unemployment since the Budget of 1909 has been very considerable. It was at its highest before then; it is at its lowest now for the last four years.

§ 39. Mr. ROYDS
asked if the capital value of small houses and cottages in Great Britain diminished in the year 1910–11 by the sum of £266,519 as compared with the capital value of such property in the year 1909–10, and notwithstanding that the number of such houses and cottages in the year 1910–11 was greater by 10,651 than in the year 1909–10; and if he will state the cause to which the decline in values in the year 1910–11 is to be attributed?

§ Mr. LLOYD GEORGE
The figures to which the hon. Member refers relate, not to capital, but to annual values. They show that in the year 1910–11 the average assessed annual values of houses and buildings under £20 was £9 18s. 2¾d., as compared with £9 19s. 4¾d. in the previous year. This small decrease of 1s. 2d. per hereditament might be due to a slight corresponding diminution in the average rent paid by the working class occupiers of this class of property; but as 1910–11 was a year of new assessment it is probably attributable to other causes, and especially to small differences in estimating yearly rental values from the weekly rents at which a large proportion of this class of property is let.