§ Mr. Jim CunninghamTo ask the Secretary of State for the Environment if he will make a statement about the terms of reference of the intended review of the Housing Act 1985. [33066]
§ Mr. ClappisonWe set out our housing policies in the White Paper, "Our Future Homes", Cm 2901, which was published on 27 June 1995. The White Paper indicated that the Government were consulting on a number of proposals and described the consultation arrangements.
§ Mr. CunninghamTo ask the Secretary of State for the Environment what powers he plans to grant to local authorities to ensure decent facilities in low-rent private accommodation. [33067]
§ Mr. ClappisonLocal authorities have a range of statutory powers to secure improvements to properties they consider to be unfit, including privately rented accommodation. We propose to strengthen their powers to deal with houses in multiple occupation to improve the safety and amenity of this type of accommodation.
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§ Mr. CunninghamTo ask the Secretary of State for the Environment what proposals he has in respect of privately rented accommodation for poor people. [33068]
§ Mr. ClappisonWe propose to
legislate to make it easier for landlords to let their property to build on progress made since 1988 on increasing the supply of good quality privately rented accommodation;make it easier for people on low incomes to obtain accommodation by placing a statutory duty on local housing authorities to secure suitable advisory services, including advice on affordable private rented housing;introduce pre-tenancy determinations to enable prospective tenants and their landlords to find out how much rent will be covered by housing benefit, before signing a tenancy agreement.
§ Mr. CunninghamTo ask the Secretary of State for the Environment when he will review the effectiveness of the business expansion scheme for privately rented accommodation. [33069]
§ Mr. ClappisonMy Department reviewed the effectiveness of the business expansion scheme in 1991–92. We concluded that the scheme was successful as a temporary measure to pump-prime investment, adding some 80,000 rental units to the private rented sector. We also concluded that the boost to the sector was likely to be shortlived and that the scheme was relatively expensive. The concession therefore ended, as planned, in 1993.
§ Mr. CunninghamTo ask the Secretary of State for the Environment what research he has evaluated on landlords attitudes to unemployed people and those on housing benefit as tenants; and what proposals he has. [33070]
§ Mr. ClappisonRecent research for my Department found that landlords' attitudes to prospective tenants varied—some landlords were cautious about taking on tenants in receipt of housing benefit, others were content to do so.
Unemployed people and those on housing benefit will find it easier to obtain accommodation if landlords are confident that the rent will be paid. We have made it easier for local authorities to offer landlords rent guarantees, helping people who cannot raise a rent deposit. We propose to introduce pre-tenancy determinations to remove the uncertainty about how much rent will be covered by housing benefit, before the tenancy agreement is signed.
§ Mr. CunninghamTo ask the Secretary of State for the Environment what discussions he has had with the Secretary of State for Social Security and local authorities to encourage people to take housing benefit or unemployed tenants by speeding up the housing benefit application process. [33071]
§ Mr. ClappisonMy Department and the Department of Social Security work together closely with local authorities on issues affecting the operation of the housing benefit system. In 1994, nearly 80 per cent. of all housing benefit claims were paid within the statutory 15 days. About 70 per cent. of authorities achieved or exceeded this target. The introduction of pre-tenancy determinations in January should allow local authorities to improve their response times further.
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§ Mr. CunninghamTo ask the Secretary of State for the Environment what assessment he has made of the extent to which the slump in the housing market has encouraged an increase in privately rented accommodation. [33072]
§ Mr. ClappisonThe number of households living in privately rented property has increased by 300,000 since 1988. The increased availability of this type of accommodation reflects a number of factors, particularly the deregulation of lettings since 1989. The current state of the housing market is, of course, another such factor.
§ Mr. CunninghamTo ask the Secretary of State for the Environment what progress the Secretary of State has made in encouraging(a) the authorised housing investment trusts and (b) other bodies to invest in privately rented accommodation. [33073]
§ Mr. ClappisonWe announced in the housing White Paper our proposal to legislate to allow housing investment trusts to be formed. The removal of rent controls in 1988 for new lettings allows landlords to make a more realistic return on their investment. Since 1988, the number of privately rented households has increased from 1.7 million to 2 million.
§ Mr. CunninghamTo ask the Secretary of State for the Environment what steps he has taken to address the concerns of the financial institutions in respect of the risks of investment in privately rented accommodation. [33047]
§ Mr. ClappisonWe propose to allow housing investment trusts to be formed so that financial institutions will be able to invest in privately rented housing without managing the properties directly and on a scale which will enable them to diversify risks. Trusts will benefit from exemption on capital gains within the trust, and a reduced rate of corporation tax.
§ Mr. CunninghamTo ask the Secretary of State for the Environment what assessment he has made of the cost-effectiveness of grants to companies to invest in privately rented accommodation; and what is his policy in respect of such grants. [33075]
§ Mr. ClappisonWe propose to allow private sector landlords to bid for funds to building housing at below market levels for social renting, but do not propose to offer grants for housing at market rents.