HC Deb 21 July 1971 vol 821 cc1440-2
28. Mr. Hardy

asked the Secretary of State for the Environment if he is aware that considerable contributions from public funds which are expended to encourage the improvement of older houses are resulting in landlords receiving appreciable benefit and return on moneys which they have not themselves invested ; and if he will take steps to advise officers in the rent service to bear such contributions in mind in the determination of fair rents.

Mr. Channon

It would not be proper for my right hon. Friend to advise rent officers about the levels at which rents should be determined, since this is governed by statutory provisions.

Mr. Hardy

Is the hon. Gentleman not concerned to see that the fair rent system is regarded as a just system? Does he think it is entirely fair that the tenant in a privately-owned property should first be liable to pay tax from which contributions towards improvement grants will come and then be liable to pay extra rent in respect of that part of an improvement to which a public contribution has been made?

Mr. Channon

I believe that fair rents should be fair. They are assessed on precisely the same basis as is laid down in the Act passed by the previous Labour Government. Fair rents should be fair, and they are generally accepted to be fair.

Mr. Selwyn Gummer

Is not my hon. Friend aware that many landlords, having applied for an improvement grant from a local authority, find that they do not benefit from the improvement of the property for some years, and sometimes find themselves considerably out of pocket, having received less in improvement grant than they should have received in the rent which was withheld from them?

Mr. Channon

My hon. Friend is absolutely right. As he knows, we are engaged on a review of the whole procedures of this Act.

Mr. Frank Allaun

If landlords are to enjoy the threefold bonanza of the 50 per cent. State grant being increased to 75 per cent. in the development areas, the enhanced value of their property, and having their rents increased on average two and a half times because they are taken out of rent control, surely it is wrong and unfair to tell the rent officers to ignore these factors and lay the whole burden on the tenant?

Mr. Channon

It is not a question of telling the rent officers anything. The statutory basis on which they assess rents is laid down in the Rent Act, and that is what rent officers must observe. Anyone who imagines that landlords of controlled property are in for a bonanza is in a dream world.