§ Mr. Grogan
To ask the Secretary of State for Transport, Local Government and the Regions what percentage real terms increase in each year he predicts for formula rents for council tenants in each individual local authority until 2011. 
§ Ms Keeble
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 0.5 per cent. a year, it is likely that average council rents will have to rise by about an average of about 1.5 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.1039W
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.