§ Mr. Ralph Howellasked the Secretary of State for the Environment if he will estimate the total value of empty council houses and flats in each local authority and reduce rate support grant by such amounts until the empty properties are either sold or let.
§ Mr. StanleyAny valuation exercise related to the total capital value of empty council houses and flats would be costly and would be likely to become out-of-date fairly quickly. However, under the new subsidy system that took effect on 1 April this year, local authorities have already been placed under a financial incentive to keep down the number of empty properties. It is assumed for housing subsidy purposes that an authority has only 2 per cent. of its stock vacant. If its actual void rate is higher, it is allowed to count for subsidy purposes half of any difference between 2 per cent. and its actual void level, up to a maximum of 4 per cent. Voids above the percentage allowed for subsidy are assumed to be producing income and subsidy is calculated accordingly. The Department is currently discussing with the local authority associations whether the same assumptions on void rates should be made in calculating authorities' rental income in arriving at their grant related expenditure assessments for rate support grant purposes.