HC Deb 01 December 1971 vol 827 cc414-5
2. Mr. Ewing

asked the Secretary of State for Scotland what is the percentage of the average income in Scotland paid in rent at the present time; and what this percentage will be after the Government proposals on housing finance are introduced.

Mr. Younger

In 1969, the latest date for which a figure is available, it was just over 4 per cent. The percentage at some future date is not possible to estimate precisely.

Mr. Ewing

To say the least, that answer is disappointing. One would have thought that if the Government were proposing to introduce legislation they would at least have known the impact which it would have on the people of Scotland. In view of that answer and of the state of the Scottish economy, would not the Minister accept that there is now a need to withdraw this proposed legislation?

Mr. Younger

This will be discussed in more detail on Monday when the Bill comes forward. The hon. Gentleman might like to know that the figure of just over 4 per cent. Which I quoted in my answer, compares with a figure for England and Wales of 7.4 per cent. and for Great Britain as a whole of 6.9 per cent. In the light of these figures we cannot think that we are too badly off.

Mr. Brewis

Can my hon. Friend say how much, on average, of housing revenue accounts in Scotland comes from the rates? Is it about 37 per cent.?

Mr. Younger

I think that figure is pretty accurate, but from the rates and public funds in terms of Government subsidy the average council house has something like 60 per cent. of its cost paid for.

Dr. Dickson Mabon

Does the hon. Gentleman realise that this involves not only council houses but other houses as well? Does he recognise that according to the specimen accounts which he gave to local authorities on 17th November the rise in rent has been substantial—about 331 per cent. every year? Given that there is an 8 or 9 per cent. rise in wages, is it not obvious that this will be a considerably higher proportion of average earnings?

Mr. Younger

The rents of houses not owned by local authorities will be under the hon. Gentleman's own scheme of fair rents. In this case rent allowance will be given for the more needy tenants. This was not the case with the hon. Gentleman's scheme.

5. Mr. Dempsey

asked the Secretary of State for Scotland what constitutes a proper rents review under the Housing Acts; and if he will make a statement.

Mr. Younger

This is for a local authority itself to consider, but factors which should be taken into account by a local authority in reviewing rents have been identified by learned counsel acting as reporters in their reports of four local inquiries since 1958.

Mr. Dempsey

Is the Minister aware that the progressives were severely rapped for increasing council house rents without carrying out a proper review? Because of this irregularity, the Labour group returned to the status quo pending a review. Is the hon. Gentleman further aware that it is strange that evidence which corroborated this fact was rejected by his own commissioner at the inquiry?

Mr. Younger

It is not for me to comment on the conclusions reached by learned counsel in his inquiry but it appears to have been his conclusion that an inquiry was justified. I hope that the town council, in keeping with its statutory responsibility, will now be able to review rents.