HC Deb 13 November 2001 vol 374 cc616-7W
Mr. Chris Smith

To ask the Secretary of State for Transport, Local Government and the Regions at what date the 1 per cent. rise in levels above the rate of inflation will commence under his restructuring proposals for local authority rent levels; if it will apply equally to all local authorities; and whether mitigation will be introduced to dampen the effect where high-level rents are instituted in high-value areas. [13791]

Mr. Byers

Rents for local authority properties are set by the responsible authorities and depend upon decisions taken locally. The proposed 1 per cent. real terms increase in rents is the assumption for the purposes of calculating housing subsidy in England for 2002–03 which was announced at the end of the 2000 spending review. It is independent of our policy on rent restructuring. Ministers are considering how it will apply to each local authority in the light of responses to the consultation on proposals for subsidy changes and will make an announcement soon. We expect rent changes as a result of rent restructuring to be limited to a maximum of £2 per week in any year above normal inflation-related increases. We are considering whether there should also be a cap on the rents of high-value properties which would otherwise attract high rents.

Mr. Chris Smith

To ask the Secretary of State for Transport, Local Government and the Regions (1) what his estimate is in relation to his proposals for the restructuring of local authority rent levels, of average rents for(a) London and (b) Inner London on the former Inner London education authority boundaries (i) at April levels, (ii) for the initial restructured levels and (iii) in subsequent years; [13790]

(2) to what extent the average figures he has circulated in relation to his proposals for the restructuring of local authority rent levels reflect (a) reductions in rent levels for smaller properties and for those in less high value areas and (b) significant increases in rent levels for (i) family-sized properties and (ii) for those in higher-value areas. [13789]

Mr. Byers

The information is not available in the form requested.

Mr. Chris Smith

To ask the Secretary of State for Transport, Local Government and the Regions under his proposals for the restructuring of local authority rent levels, what account the restructured levels will take of the(a) nature and condition of an estate on which the property is located and (b) broad property values of the overall area. [13788]

Mr. Byers

Under restructuring, social rents will be based on a formula that includes local earnings, property size and relative property value. The property value will reflect the size, location and condition of the property.

Social rents will generally remain well below the levels charged by reputable private landlords for similar properties.