§ Mr. WebbTo ask the Secretary of State for the Environment, Transport and the Regions if he will estimate the gross cost to the public sector if all local authority rents were to be cut by 10 per cent.; and what would be the cost net of savings in housing benefits. [12836]
§ Mr. RaynsfordA 10 per cent. reduction in guideline rents in 1998–99 for housing revenue account local authorities in England would have the following estimated effects:
Present value (discounting to 1996–97) of effects from 1998–99 to 2027–28 1996–97 prices discounting to 1996–97 Effect Present value (£ million) Loss of gross rental income 5,819.6 Savings in rent rebates 4,378.2 Saving in public expenditure linked to the RPI 1,341.4 Net public expenditure cost 100.0
§ Mr. WebbTo ask the Secretary of State for the Environment, Transport and the Regions what increase in subsidy to housing associations would be necessary to produce a reduction of 10 per cent. in the average level of housing association rents. [12835]
§ Mr. RaynsfordRent subsidies are not paid to housing associations. Social housing grant is a capital grant paid 727W on new housing association development, but any changes in the grant rate for new development would not directly affect rents on existing housing association stock.