HC Deb 05 November 1993 vol 231 cc483-4W
Ms Coffey

To ask the Secretary of State for the Environment what assessment he has made of the impact of the decrease of grants on the average level of housing association rents.

Sir George Young

Evidence on a range of issues, including the likely impact on the affordability of rents and on the availability of private finance, was fully considered before a decision was taken on the average grant rate for 1994–95.

The Housing Corporation's assessment of the grant rate model for 1994–95 showed that, because of reductions in procurement and borrowing costs, the affordability of modelled rents could be held constant at a lower average grant rate than the current 67 per cent. Furthermore, because of the scope for rent pooling and efficiency savings, evidence suggested that actual rents would he lower than those suggested by the model.

It is, however, for housing associations to set their own rents at levels which are affordable to those on low incomes, as required by the tenants guarantee. The excellent response to the 1994–95 bidding round suggests that associations are confident of their ability to undertake schemes at affordable rents within the grant rates available.

Ms Coffey

To ask the Secretary of State for the Environment if he will make a statement on the operation of rent assessment committees in assessing the market rent for housing association property.

Sir George Young

Under section 13 of the Housing Act 1988, assured tenants of registered housing associations have the right in certain circumstances, to refer their rent to a rent assessment committee for the determination of a market rent.

Rent assessment committees carry out this function under section 14 of the Act which requires them to consider what level of rent the landlord could reasonably expect for the property, if it were let on the open market under an assured tenancy.

Ms Estelle Morris

To ask the Secretary of State for the Environment what advice or representations he has received concerning the capacity of housing associations to pool rents; and if he will make a statement.

Sir George Young

The Housing Corporation has advised that, across the whole programme, housing associations continue to have further capacity to pool rents; the position for individual associations may, of course, vary.