§ Mr. SteenTo ask the Secretary of State for the Environment if he will set out in theOfficial Report the basis of his Department's calculation that rent rises in council house property would be 95p per week as far as the housing stock in the South Hams is concerned.
§ Mr. Chope[holding answer 22 January 1990]: We have, for guideline purposes, assumed an increase in national rent income of 10 per cent. (£444 million). We intend to attribute this increase to councils in proportion to the value of their housing stocks, subject to adjustments to reflect existing rents and to keep guideline increases within a range from 95p to £4.50 a week. On the basis of past sales, we estimate that the value of South Hams' housing stock accounts for 0.088 per cent. of the total value of the national council housing stock. A guideline rent, calculated as a proportion of the national total without further adjustments, would be £21.37. As this is less than South Hams' current average rent of £25.75, we have assumed a guideline increase of 95p, the national minimum, which is less than would be required to keep pace with inflation. Subsidy will be paid to the authority on the assumption that its actual rent increase follows the guideline, but the council is free to determine its own rents.