§ Mr. Marplesasked the Minister of Housing and Local Government whether he is satisfied that the 12½ per cent. increase in rent which can be charged under part 3 of Section 29 of the Housing Act 1961 by landlords in respect of improvements to homes is inducing landlords to make such improvements when rates of interest are at their present level; when the 12½, per cent. figure was last reviewed; and if he will make a statement.
§ Mr. Denis HowellThe increase of rent by 12½ per cent. of the landlord's cost of improvements allowed by Section 29 of the Housing Act 1961 in respect of controlled tenancies is no longer the only inducement to landlords to make improvements. Under Part III of the Housing Act 1969 a landlord who improves a dwelling subject to a controlled tenancy so that it has all the standard amenities, is in good repair having regard to its age, character and locality and disregarding internal decorative repair, and is in all other respects fit for human habitation, may obtain a qualification certificate from the local authority and have a "fair rent" registered for it by the rent officer under the rent regulation provisions of the Rent Act 1965 (now Part IV of the Rent Act 1968).
The 12½ per cent. figure was reviewed during the preparation of the Housing Act 1964, when it was concluded that no revision of the figure was necessary. The same figure was adopted in the Rent Act 1965 in respect of regulated tenancies for which no rent is registered. In these cases, however, the landlord has the option of applying to the rent officer for a certificate stating what the "fair rent" would be after the improvements have been carried out, and subsequently registering that rent.