§ 5.27 p.m.
§ LORD, MESTON rose to ask His Majesty's Government to consider taking steps to prevent the charging by landlords of excessive premiums on the letting of property, especially residential property such as flats in the County of London. The noble Lord said: My Lords, I rise to ask the question standing in my name on the Order Paper. This question may well be premature, in view of the fact that a Committee have recently been appointed to investigate the whole subject of leasehold tenure. However, I think this is probably a matter which has troubled the minds of many people of the country, and may be deserving of early action. Let me say at once that all those houses which are covered by the Rent Restrictions Acts are outside the scope of this question. I also appreciate the fact that there are tribunals sitting for the purpose of investigating the rents of furnished letting accommodation. However, there are numerous other cases where this abuse—and in certain cases I regard it as an abuse—does exist. Let me also say that I am not putting any case against landlords as a class, because there are many tenants, as well as landlords, who charge premiums on the subletting or assigning of their interest in property.
§ I hope that it will be possible for the Government to take some action on this matter, because it is one which is causing a good deal of distress. Take the case of the person who manages, with great difficulty, to obtain a lease for five years on a flat in London at a rental of £300 a year. That rental is probably, in the circumstances of the case, an adequate rental; but over and above that figure he may be called upon to pay a premium of, say, £1,000. I am not referring, of course, to any part of a premium which directly relates to fixtures and fittings, and the like; I am referring merely to that part of a premium which is, in effect, a method of charging a higher rent. I am not a Socialist, and I never shall be, but I think 201 that if ever there were a case for intervention by the State in private contract this is such a case. I hope that the Government will see fit to do something about it before the Committee on Leasehold Tenure publish their Report.
§ THE LORD CHANCELLORMy Lords, the Government hope to introduce legislation to deal with the topics covered in the Report of the Inter-departmental Committee on Rent Control commonly known as the Ridley Committee Report. It will be remembered that that Committee recommended, amongst other things, that the existing Rent Restrictions Acts should be replaced as soon as possible by a single comprehensive measure. Although the Government are fully aware of the desirability of this course, I cannot, in view of the present pressure on Parliamentary time, hold out any prospect of early legislation.
It is not, at the present time, contemplated that the legislation will deal with residential premises entirely outside the Rent Restrictions Acts, either as they now exist or as they may be amended. At the same time, your Lordships will be aware that I have, within the last few days, set up a Departmental Committee under the Chairmanship of Lord Uthwatt to consider various questions affecting leaseholds in England and Wales, and I think it is clear that the terms of reference of this Committee embrace the point that the noble Lord, Lord Meston, has in mind, so far as it concerns premises used for business, trading or professional purposes.