§ 15. Mr. KhabraTo ask the Secretary of State for the Environment what is the average rent for new lettings by housing associations; and what was the equivalent figure for 1989.
§ Mr. Robert B. JonesThe average rent for housing association lettings made in the third quarter of 1994 was £45.63. The equivalent figure for the calendar year 1989 was £23.64.
§ Mr. KhabraDoes the Minister agree that the doubling of rent has been caused by the Government's deliberate policy of reducing the rate of grant to housing associations, which has fallen from 75 per cent. in 1989 to 62 per cent. today? Will he consider giving more grant 894 to the housing associations so that the rise in rents stop and more people can be given homes in housing association property?
§ Mr. JonesAs I am sure that the hon. Gentleman knows, there is a trade-off between grant rates and volumes. Reducing the grant rate has, of course, resulted in 10,000 more lettings being made available. Of course the hon. Gentleman is right that the grant rate must be kept under review. My right hon. Friend the Member for Ealing, Acton (Sir G. Young) made exactly that point as Minister for Housing and Planning when he answered questions before the Environment Select Committee on the subject some considerable time ago.
§ Mr. Anthony CoombsWill my hon. Friend remind the House of the enormous benefits to be gained from the wholesale transfer of housing stock to housing associations, which can mean far better management, a reduction in local authority debt, lower council taxes as a result, and far better conditions for those tenants whose houses are transferred?
§ Mr. JonesMy hon. Friend is right to pay tribute to what has happened as a result of large scale voluntary transfers. It is not only a question of benefits for the local authority and for the tenants. Additional building has also been possible as a result of LSVT housing associations. They have also been able to bring forward their capital improvement programmes. It is very much a win-win situation.
§ Mr. PikeDoes the Minister recognise that the private sector is looking increasingly warily at investing in housing association stock because rent levels are now so high that people can obtain those properties only if they can get full housing benefit? Does the Minister accept that the situation is now unacceptable and that we must do something more to ensure that units are offered at affordable rents?
§ Mr. JonesAs I am sure the hon. Gentleman is aware, my right hon. and hon. Friends and I spend much time discussing these matters with the lenders. We have found a continuing enthusiasm on their part for lending to housing associations, which they see as a solid investment.