§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate 634W of the annual rental value of the privately owned housing stock in the United Kingdom; and what is his estimate of the yield in the event of this being assessed to tax, on the assumption that one-fifth of the total rent would be offset against the cost of repairs and renewals.
§ Mr. Peter ReesIt is estimated that the gross annual rental value of the privately owned housing stock in the United Kingdom amounted to about £8,500 million in 1978. The main components of this estimate are the imputed rent of owner-occupied dwellings and the gross rents paid to landlords in the private sector. Rents paid to local authorities and public corporations are not included. The estimates are those implied in the National Income Blue Book—1979 edition—figures for consumers' expenditure on rents, rates and water charges in 1978.
Assuming that deductions were allowed to cover the cost of repairs and renewals and that these costs were as low as one-fifth of the gross rental value, it is estimated that the yield of income tax and corporation tax on the annual rental value might be about £2,100 million in a full year. This does not allow for the tax presently payable on the rents of privately owned houses. It cannot be estimated precisely but probably amounts to £200 million to £250 million. The existing deductions for mortgage interest would also increase by reason of the increase in taxpayers' marginal rates and the possible removal of the existing ceiling on the relief.