HC Deb 06 December 1920 vol 135 cc1761-2W

asked the Minister of Health whether it is correct to assume, from the wording of the paragraph on rents in the first Annual Report of the Ministry of Health, 1919–20 (Part II, Housing and Town Planning), that, if it is found that a house costing £1,000 to erect in 1920 cannot be erected at a smaller cost in 1927, the rental of such house after 31st March, 1927, must be based on an economic return on the outlay, and that the nominal rent charged prior to that date will then cease; and what would be the position of a local authority with regard to the loss if the economic rent could not be secured?


Under the Regulation an economic rent is to be charged in 1927 on the cost of building at that date, if that course is reasonably possible. If it is not, the rent is to be the best rent that can reasonably be obtained from the classes of tenant in the district for whom the houses were provided, regard being had to any superiority of such houses in accommodation, construction, or amenities as compared with houses previously built in the district.

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