§ 28. Mr. Sorensenasked the Minister of Housing and Local Government and Minister for Welsh Affairs how many applications have been made to him by local authorities in the Greater London area for the compulsory purchase of houses for which excessive rents have been demanded by landlords from sitting 212 tenants; on how many cases the applications have been refused; and if he will indicate the range in rent increases that led to those applications by local authorities.
Dr. HillForty-seven compulsory purchase orders have been submitted for confirmation in response to Circular 45/60. Eighteen of them have since been withdrawn. Of the remaining 29 I have refused to confirm 12, but in five of these the rent was not in dispute.
On the last point, under the terms of the circular, what is necessary to justify compulsory purchase under Part V of the Housing Act, 1957, is that, as the result of exorbitant rents being demanded, tenants are in danger of becoming homeless.
§ Mr. SorensenIs the right hon. Gentleman aware that in my district and in other districts exorbitant rents are being demanded by property corporations? In one case in particular in my area rents have increased from £2 a week to about six guineas a week. May we have an assurance that the right hon. Gentleman will sympathetically consider any application made by the local council for the compulsory acquisition of property in this category?
Dr. HillA local council is fully entitled to make an order and to submit it in respect of cases covered by the circular. But the hon. Gentleman will appreciate that it is impossible for me to make any general statement which could be held to cover individual cases.
§ Mr. M. StewartCould the right hon. Gentleman answer more precisely the last point in my hon. Friend's supplementary question? We would then have a better idea of what the Government regard as an exorbitant rent.
Dr. HillMay I take two typical examples in a recent application. It was proposed to increase the rent of a two-roomed flat from 28s. to 35s., an increase from 4÷5 to 5.6 of gross value, and to increase the rent of a three-roomed fiat from 30s. to 45s.
§ Mr. SorensenWould not the Minister agree that if a rent is treble what it was originally that is an extremely exorbitant increase?
Dr. HillThe hon. Gentleman will appreciate that I am bound by the circular within existing law. Only when tenants are in danger of becoming homeless as a result of exorbitant rents is an application granted.