§ Mr. GroganTo ask the Secretary of State for Transport, Local Government and the Regions (1) what real terms percentage increase in each year he predicts for formula rents for council tenants in York local authority until 2011; [32033]
(2) what real terms percentage increase in each year he predicts for formula rents for council tenants in Selby local authority until 2011. [32034]
1000W
§ Ms KeebleThe underlying rate of increase of formula rents will be the same for all local authorities. In 2002–03, we predict that the average rate of increase in real terms for formula rents for council tenants will be 1 per cent. Taking into account the policy that registered social landlord rents increases should be limited to RPI plus ½ per cent. a year, it is likely that local authority formula rents will have to rise by an average of about 1½ per cent. a year in real terms over the next 10 years to achieve Ministers' intention that similar rents should be charged for similar council and housing association properties by 2012. This is about half the average rate of council rent increases over the last 10 years.
However, the precise path of social rents over the next 10 years will depend, among other things, on the outcomes of future spending reviews and the decisions taken by individual landlords who retain responsibility for rent setting.