§ 28. Mr. Albuasked the Minister of Housing and Local Government and Minister for Welsh Affairs why the Edmonton Borough Council was refused permission to purchase compulsorily, in accordance with his predecessor's Circular No. 45/60, five houses of which they considered rents had been exorbitantly increased.
Dr. HillThe two compulsory purchase orders covering these houses were not confirmed because the rents asked by the landlords were not thought to be exorbitant.
§ Mr. AlbuIs the Minister aware that the rents asked are about four and a half times the gross value, and that, in addition, the landlords impose a condition that tenants must have incomes of at least four times the amount of the rent, plus rates? Is he further aware that most of these people earn about £12 or £16 a week, and that if they are turned out they have absolutely nowhere else to go where they can get houses to rent; and that they are now too old to be allowed to put down the money, even if they had it, to buy a house on mortgage?
Dr. HillA typical house of the five mentioned was offered on a lease at £221 a year. I understand from the property company that the words to which the hon. Gentleman refers are being withdrawn, and that the tenants of the five houses are being offered alternative accommodation at considerably cheaper rents.
§ Mr. AlbuThat is complete news to me. Where the right hon. Gentleman gets that information, I do not know. Would he not, however, agree that this shows the extreme value of the Parliamentary Questions that are now being addressed to him? Does he not also think that if powers are given to local authorities, the authorities should be allowed to use them, so that tenants are not put to weeks and weeks of utter misery waiting to find out what is to happen?
Dr. HillI warmly agree with the hon. Gentleman on the first point. He says that the information is new to him. It was new to me until this morning. I sought it in order to give a more effective and informative answer to him.
§ Mr. M. StewartIf four and a half times the gross value is not exorbitant, what is?
Dr. HillThe inspector examined the circumstances in detail. He recommended that these were not exorbitant rents, and the Minister accepted the recommendation.