HC Deb 23 June 1982 vol 26 cc294-6
24. Mr. Foulkes

asked the Secretary of State for the Environment what representations he has received about the phasing of rent increases arising from the operation of section 60 of and schedule 10 to the Housing Act 1980.

Mr. Stanley

A number of letters have been received from hon. Members, the National Federation of Housing Associations and housing association tenants.

Mr. Foulkes

Is the Minister aware of the problem created by the operation of the Act for housing association rents? The increases in service charges are no longer able to be phased over three years and have to be paid immediately. Is he aware that as a result of this some pensioners are having their rents increased by up to £10 a week? Will he and the Government take action to limit such increases?

Mr. Stanley

I shall examine the statutory service charge position and if I can shed any further light on it for the hon. Gentleman I shall do so. The problem goes back to 1972, when a statutory ceiling on housing association rent increases of 75p was imposed as part of the counter-inflation policy of that time. Throughout the tenure of office of the Labour Government there was no upward adjustment of that figure. That is why there is a certain amount of catching up to be done to meet the fair rent level.

Mr. Tilley

As the hon. Gentleman is taking us down memory lane, does he remember that in Committee on the Housing Bill 1980 Opposition Members told him that housing associations were deeply concerned that statutory burdens would be placed on them to create exactly the unfairness and hardship that my hon. Friend the Member for South Ayrshire (Mr. Foulkes) has mentioned? Does he recollect that the Opposition tabled amendments that would have averted these impositions?

Mr. Stanley

My memories of the proceedings in Committee while considering the Housing Bill 1980 will for ever be with me. I think that the hon. Gentleman will remember that the statutory position created by that measure places housing association tenants within the existing fair rent system. No housing association tenant is being asked to pay a higher rent than any private sector tenant. All housing association tenants have exactly the same rent allowance protection as all other private tenants.

25. Mr. Pitt

asked the Secretary of State for the Environment what are the current average levels of council rents in England and Wales.

Sir George Young

Full details are not yet available, but preliminary estimates indicate that average unrebated rents of local authority dwellings in England and Wales stood at some £13.54 per week at the end of April.

Mr. Pitt

I am grateful to the hon. Gentleman for his reply. Is he aware of the soaring discrepancy in many areas between housing association rents and local authority rents due to rent officers' registrations? Will he consult rent officers so that all rents in the community housing sector can be kept at parity?

Sir George Young

My Department has no control over the rents that are fixed by rent officers. If we were to start to go down the road that the hon. Gentleman has outlined, there would have to be a major change of policy.

Dr. Mawhinney

Is my hon. Friend aware that many of my constituents are paying rent for between six months and two years longer than they should because of the unwillingness of the Peterborough city council to sell council houses? When will he take action to assist these people so that they can stop paying rent and start to pay mortgages?

Sir George Young

My hon. Friend the Minister for Housing and Construction keeps under close scrutiny the progress made by local authorities in implementing the right-to-buy policy. I understand that he will shortly be writing to the local authority at Peterborough on this subject.

Mrs. Ann Taylor

The Minister says that his Department has no responsibility for the decisions of rent officers, is it not a fact that his Department has issued beacon rents, which are guidelines on regional averages, and that rent officers are using these guidelines to increase rents in their areas?

Sir George Young

I understand that the Department gives no advice or direction to rent officers. However, it makes available some information, which the officers asked the Department to supply.

Mr. Marlow

In how many local authority areas is the rent revenue from council house rents less than the cost of management, administration and maintenance?

Sir George Young

I should need notice of that question before I could even begin to answer it.

Mr. Allan Roberts

How many local authorities' housing revenue accounts are in surplus because of the high rents that are now being charged? How many of them are making a profit out of their council tenants?

Sir George Young

I refer to the answer that I gave to my hon. Friend the Member for Northampton, North (Mr. Marlow).