Housing (Hansard, 13 July 2001)

§ Mr. Coleman
To ask the Secretary of State for Transport, Local Government and the Regions what percentage of(a) local authority and (b) registered social landlord rents in Hammersmith and Fulham he estimates will be in excess of £100 per week in (i) 2002, (ii) 2005 and (iii) 2010. [2987]

§ Ms Keeble
Estimates will be available only when the landlords have completed their rent plans, which are due by April 2002. However, later this summer the results will be available from the case study research into the practical issues arising from the rent reforms in west London. These will include initial estimates of the effects of the reforms on the rents of properties owned by London borough of Hammersmith and Fulham and Notting Hill Housing Trust.

§ Mr. Coleman
To ask the Secretary of State for Transport, Local Government and the Regions (1) what consultation his Department has carried out to date over his policy on rent restructuring with(a) local authority tenants, (b) registered social landlord tenants, (c) local authorities and (d) registered social landlords; [3002]
(2) what plans his Department has to consult the representatives of local authority and registered social landlord tenants over his plans for rent restructuring; and if he will make a statement. [3000]

§ Ms Keeble
My Department's approach to bring a fairer and more coherent structure to social rents is set out in the December 2000 policy statement "Quality and Choice: A decent home for all—the way forward for housing". This drew on response to the April 2000 Green Paper "Quality and Choice: a decent home for all" which almost universally agreed on the need to bring more coherence into the structure of social rents. The Green Paper was sent to all local authorities, registered social landlords and national tenant groups.
We are now in the implementation stage. The Housing Corporation is considering the results to its March 2000 consultation paper on its proposals for implementing the rent restructuring framework among registered social landlords and will shortly be publishing interim guidance. It plans to issue final guidance in the autumn.
In the local authority sector, a consultation paper is being published on changes to the housing revenue account subsidy system to support rent restructuring.

§ Mr. Coleman
To ask the Secretary of State for Transport, Local Government and the Regions what his Department's most recent estimate is of the average increase of housing association tenants' rents in the next 10 years in real terms(a) in total and (b) in Hammersmith and Fulham. [3003]

§ Ms Keeble
The December 2000 policy statement "Quality and Choice: A decent home for all—the way forward for housing" stated that from 2002–03 the rents of registered social landlords (RSLs) should, on average, rise by 0.5 per cent. above inflation (RPI + 0.5 per cent.) per annum. Over a 10-year period this will result in average RSL rents rising by around 6 per cent. in real terms. Estimates for housing association tenants' rents in the London borough of Hammersmith and Fulham will only be available once their landlords have completed their rent plans. However, later this summer the results658W will be available from the case study research into the practical issues arising from the rent reforms in west London.

§ Mr. Coleman
To ask the Secretary of State for Transport, Local Government and the Regions what discretion in percentage terms his Department intends to give to local authorities in respect of the overall level of rents. [2986]

§ Ms Keeble
Local authorities will continue to be free to set rents at whatever level they consider appropriate. However the approach to social rent reforms set out in the December 2000 policy statement "Quality and Choice: A decent home for all—the way forward for housing" encourages social landlords to set rents on individual properties which are normally within a band of up to 5 per cent. higher or lower those indicated by the new rents formula.

§ Mr. Coleman
To ask the Secretary of State for Transport, Local Government and the Regions when his Department expects to publish the consultation document on restructuring the housing revenue account subsidy system; and if he will make a statement. [3067]

§ Ms Keeble
We published this consultation paper on 13 July. I have arranged for a copy to be placed in the Library of the House. The closing date for comments on our proposals is 8 October.
We have announced a policy for achieving fair and affordable rents in the social rented sector. As part of this we have set out a common basis on which all rents in the social sector should be set and announced a 10-year transitional period in which the changes should as far as possible be made.
The housing revenue account (HRA) subsidy system needs to be changed so that it supports rent restructuring. At the same time the opportunity can be taken to relieve stresses in the system that have become apparent as a result of the way in which rent rebate subsidy limitation was introduced in 1996–97.