§ Mr. Swinglerasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will undertake, and publish the results of, a national survey of the present level of municipal rents and the extent to which they have risen in the last five years and invite local authorities to submit proposals on how to reduce them.
§ Sir K. JosephInformation about rents charged by local authorities is published annually by the Institute of Municipal Treasurers and Accountants and I see no need for me to duplicate this work. Though the general level of council rents has been rising for some time, it is still in many areas below what can fairly be charged. The most useful thing local authorities can do is to adopt realistic rent policies which will ensure that tenants who can afford to pay full cost rents do so and that adequate rent assistance is given to those most in need.
§ Mr. Swinglerasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he is aware of the concern among tenants caused by the recent municipal rent increases in Newcastle-under-Lyme due to high 201W interest rates; and what steps he will take to enable the Council to build homes for letting at lower rents.
§ Sir K. JosephYes. But I also know that the local ratepayers' association is concerned that even with the present increase in rents there will remain a deficit in the housing revenue account for 1962–63 of £33,000 that will have to be made up by a contribution from the general rate fund. This sum is equivalent to a tenpenny rate. The new rents to be charged (on the basis of a 48-week rent year) are £1 11s. 9d. for a typical post-war 3-bedroom house; and £1 4s. 6d. for a typical pre-war 3-bed-room house. These rents are certainly not high. If the Council have difficulty in making houses available to poorer families at rents they can afford, they can overcome this by the introduction of a rent rebate scheme under which rent assistance is given only to those who really need it. In this way more help can be given to those tenants with the greatest need.
§ Mr. Swinglerasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will give an average estimate of the proportions of a current municipal rent payable for interest charges and for capital repayment, respectively.
§ Mr. CorfieldIn 1960–61 interest charges accounted for 56 per cent. of the housing expenditure of local authorities in England and Wales and capital repayments for a further 16 per cent. It is not possible to say what proportion of the debt charges was met from rents, but the latter provided 72 per cent. of all housing income.