§ Mr. Bendallasked the Secretary of State for the Environment whether he will take any further steps to improve the prospects for the private rented sector, especially in London.
§ Mr. John PattenI have today laid before the House two orders under the Housing Act 1980. The first of these repeals the provisions of the Rent Act 1977 and the rent (Agriculture) Act 1976 which require any increase in a fair rent for a regulated tenancy set by a rent officer or a rent assessment committee to be phased over two years. Because inflation has fallen to such a low level, there is no longer any justification for delaying full payment of any rent increase when awarded. This should improve marginally the return available to private landlords from fair rents. At the same time, tenants who are eligible for housing benefit will of course receive benefit at once on any higher rent.
The second order amends the Housing Act 1980 so as to remove the requirement on a landlord in the Greater London area who is letting a property under shorthold to register a fair rent for the property. This requirement was abolished in 1981 for properties outside the Greater London area. It will still be open to either landlord or tenant for a property let on shorthold in the Greater London area to apply for a fair rent to be registered. I hope that this will encourage owners keeping property empty in London to now let it, secure in the knowledge that they will be able to obtain vacant possession.