§ Mr. WebbTo ask the Secretary of State for the Environment, Transport and the Regions what powers he has to influence the level at which housing associations set their rents; and if he will make a statement. [37173]
§ Mr. RaynsfordUnder Section 36 (3) of the Housing Act 1996, draft guidance prepared by the Housing Corporation on the management of housing accommodation by registered social landlords has to be approved by my right hon. Friend the Secretary of State for the Environment, Transport and the Regions before being issued by the Corporation. Under Section 36(2) of the Act, the guidance may include the principles upon which rents should be determined.
Following consultation, my right hon. Friend approved management guidance issued by the Housing Corporation in December 1997, which included guidance on rents and service charges. This advises registered social landlords that they should endeavour to charge rents that are below equivalent market rent levels, are affordable to those in low paid employment and that do not increase each year by more than the guideline limit of the increase in the Retail Price Index plus 1%.