§ Mr. Warrenasked the Secretary of State for the Environment why local authorities are being allowed to make rent increases to their tenants higher than those being allowed to be made by private landlords to their tenants.
§ Mr. FreesonThe freedom to fix rents for dwellings in their ownership, restored to local authorities under the Housing Rents and Subsidies Act 1975, is subject to the requirement that such rents must be reasonable and must have regard to the interests of tenants and ratepayers as a whole. Private lettings are not subject to similar requirements, and in these circumstances it is reasonable that maximum rents for private regulated tenancies should be subject to independent determination by the rent officer/rent assessment committee machinery.
In the case of a rent increase under a private regulated tenancy of more than 40p a week, the increase must be phased: in two annual instalments if the increase is between 40p and 80p a week, and in three if it is more than 80p a week. However, the weekly increases permitted under these arrangements for private lettings need not be any less than those determined by local authorities.