Compulsory Purchase Order, Fulham (Hansard, 13 November 1962)

§ 5. Mr. M. Stewart
asked the Minister of Housing and Local Government and Minister for Welsh Affairs why he refused to confirm the compulsory purchase order made by the council of the Metropolitan Borough of Fulham in respect of 12A North End Crescent, W.14.

§ Sir K. Joseph
The council failed to establish that the tenant was in danger of being made homeless and that the rent was exorbitant in relation to comparable property.

§ Mr. Stewart
Does the Minister realise that the rent being asked was five times the gross value? Does he appreciate that if he does not regard that as exorbitant it will render nugatory any powers that local authorities have to prevent extortion? Does he remember that he said that in coming to his decision he looked to the owner to put the property in repair but that nothing was done, and that it has been done now only 178 because the council threatened to take further action?

§ Sir K. Joseph
On the repairs point, the landlord did undertake to carry out repairs at once. He did not carry out that undertaking and proceedings were commenced against him. On the other point, the council did not produce any evidence that the rent asked was beyond the tenant's means or that he could not afford alternative accommodation at an economic rent. The tenant made no attempt to negotiate with his landlord.

§ Mr. Stewart
But does not the right hon. Gentleman realise that the tenant was already paying the economic rent and was being asked for much more than that? If the Minister is to take as a criterion whether the rent is within the tenant's means, it means that the landlord can screw up the rent indefinitely according to the size of the tenant's income.

§ Sir K. Joseph
But the rent of accommodation must reflect its size and the rent of comparable accommodation in the neighbourhood and, to a certain extent, the means of the tenant—[HON. MEMBERS: "No."] Certainly. The rent-paying capacity is a factor to be taken into account. I am told that in this case the tenant made absolutely no attempt to negotiate with the landlord.