§ Mr. SandersTo ask the Secretary of State for the Environment, Transport and the Regions what his policy is on the relationship of council rents to market rents; and if he will make a statement. [79603]
§ Mr. RaynsfordCouncils and Registered Social Landlords have provided housing for several decades at below market levels to meet the needs of households who cannot afford the costs of owner occupation or market renting.
The levels of rent charged by councils have evolved incrementally over many years without any necessary correlation with market levels or with the perceived value of the property.
The Housing Green Paper to be published later in the year will look at options for strengthening the link between social rents and the size, location and condition of properties.
65WThe Government will consult extensively on any proposals in the Green Paper. It is important that any reforms help make the housing market and labour market fairer for all concerned.
§ Mr. SandersTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement about rent levels in (i) the private sector, (ii) housing associations and (iii) local councils. [79604]
§ Mr. RaynsfordThe mean rent for all types of private sector letting in England in 1997–98, as estimated from the Survey of English Housing, was £79 per week. This excludes water and other charges.
The mean housing association rent in England at 31 March 1998 is estimated as £ 49.71. This excludes service charges. Housing associations will be expected to limit annual increases in their overall rent and service charges for their stock to no more than RPI + 1%.
The mean local authority rent in England at April 1998 is estimated as £42.24. The Government's policy is that the average local authority Guideline Rent in England will increase by RPI + 1% in 1999–2000, by RPI + 2% in 2000–01 and by RPI + 2% in 2001–02.