§ 2.48 p.m.
§ The Question was as follows:
§ To ask Her Majesty's Government whether it is their policy shortly to initiate a substantial increase in rents; and whether rent officers have been informed of this situation.
§ The PARLIAMENTARY UNDERSECRETARY of STATE, DEPARTMENT of the ENVIRONMENT (Lord Bellwin)My Lords, fair rents are fixed independently by individual rent officers on the statutory basis laid down by the Rent Act 1977. The Department of the Environment provides rent officers with statistical information about previous rent registrations, but issues no guidance to them on the fixing of rent levels.
§ Lord HALEMy Lords, is the noble Lord aware that the Question is based, as I tell him in the Question, on an article in the Guardian which goes into detail and which takes a different point of view; which specifically mentions Oldham as the next area to have its rents increased; which says that the distribution of advice to rent officers now consists of nothing but figures of increase; which gives, in the Guardian itself, figures of the prospective increases in rents in Oldham; and which suggests that practically the whole of the rest of England except the limited area it describes has now had rents increased from 30 to 40 to 50 to 70 per cent.? Is there not perhaps a little truth in these allegations, or can the noble Lord reassure my former constituents?
§ Lord BELLWINMy Lords, not for the first time, I have to say that the article was thoroughly misleading and totally wrong. There are no such guidelines issued. I stand categorically on what I said in my original Answer. The statistics sent out for rent officers was information listing registered rents for the years 1978–79. What deductions may have been drawn from that information by the newspaper to which the noble Lord refers or by any other newspaper is up to the newspaper concerned.
§ Lord BELLWINMy Lords, the information sent consisted of facts of what had gone before. What one deduces from that and what projections are made is up to the individual. One must understand that under the Rent Acts it is the duty of rent officers only to establish what fair rents should be. They will continue to do that under the statutory requirements which are laid down.
§ Baroness BIRKMy Lords, if the rent officers are to make their own individual decisions, what is the purpose of having statistical information relating to the levels of rents and property values for other areas? Why do they not have their own individual ones? May I ask the Minister whether he can make these notes which are sent out available in the Libraries of both Houses of Parliament, so that we ourselves can judge them?
§ Lord BELLWINMy Lords, there is no secret about this. The procedure is the same as pertained under the previous Administration and as has pertained ever since the Rent Acts called for this procedure. The information to which the noble Baroness referred is readily available in all sorts of places. If she wishes to have copies, I can arrange for her or for anyone else to have them. There is nothing secret about this.
Lord JANNERMy Lords, may I ask this of the noble Lord? When it is a matter of assessing the amount of rent, what does he understand by the expression "scarcity value has to be taken into consideration"?—because nobody I have ever met believes that scarcity value means anything at all in view of the interpretations which are being given to it.
§ Lord BELLWINMy Lords, I have said many times from this Box that the Act lays down that scarcity assets must not be taken into account in calculating what the fair rents will be. Each rent officer in his own district presumably comes to conclusions based on the procedures laid down in the Act. I am sorry that I cannot be more helpful to the noble Lord, Lord Janner, on this point. I try to be helpful if I can.
Lord JANNERMy Lords, what does "scarcity value" mean? How do you assess scarcity value? Is it because there are other places not available for renting? What is it?
§ Lord BELLWINMy Lords, if at this moment I were to give a dissertation on the definition of "scarcity value", I should have to keep your Lordships longer than Question Time allows. Most noble Lords know what it is. It is that it does not take into account the market value based upon the amount of accommodation which is or which is not available. It is what it says. If there is undue scarcity, that cannot be taken into account in the calculation in establishing the figure. If the noble Lord wishes to go beyond that, why do we not make special arrangements and perhaps take an occasion for a debate or discussion when I shall be glad to discuss the matter?
§ Lord ROSS of MARNOCKMy Lords, when the Minister was asked yesterday about the firmness of Government policy about the sale of council houses he was firm and candid. Why is he so coy today? We have legislation before us in respect of council rents and private rents in Scotland, England and Wales. Is it not the case that there is more money laid aside there—or expected to be laid aside there—in respect of rent rebates? Surely, that implies increases of rents.
§ Lord BELLWINMy Lords, with respect to the noble Lord, the question that he has raised is totally different from that on the Order Paper. May we not stick to that on the Order Paper? As far as being coy, I am not aware that I am particularly coy. If at any time the noble Lord wishes to discuss housing rents—and I am sure that there will be many occasions very shortly to do so—I shall be happy to discuss the matter with him.
§ Lord PARGITERMy Lords, can the Government say to what extent enhanced capital value due to property speculation is taken into account by rent officers in assessing rents?
§ Lord BELLWINNo, my Lords; nor would I attempt now to do so. I think it has nothing to do with the Question, which is all to do with the individual calculations made by individual rent officers all over the country. To try to make generalisations would be wrong.
§ Lord LEATHERLANDMy Lords, can the noble Lord tell us by what percentage rents of houses have increased since last May when the Government came into office? Can he tell us whether it is more or less than the general 20 per cent. increase which has taken place in retail prices since the Government came into office?
§ Lord BELLWINMy Lords, I can say in general terms that the increases have not been greater than the inflation rate. But, again, this is the kind of information, with respect, that if the noble Lord wishes to have in detail and will write to me, I will gladly send him.