(c) crown copyright
Catalogue Reference:CAB/129/54
Image Reference:0049
S E C R E T
C O P Y NO
C . ( 5 2 ) 299
1 5 T H S E P T E M B E R , 1952
CABINET
R E N T R E S T R I C T I O N AND HOUSING
M e m o r a n d u m b y t h e M i n i s t e r of H o u s i n g a n d
Local Government
A t C a b i n e t I w a s a s k e d a b o u t r e n t s , ( C . C . ( 5 2 ) 78th C o n c l u s i o n s ,
Minute 9).
Here is a plan.
If w e a r e t o a c t a t a l l , w e m u s t a c t q u i c k l y ,
2.
"Rent r e s t r i c t i o n " and "Housing" a r e closely interlocked.
But
" r e n t r e s t r i c t i o n " c a n o n l y ( p o l i t i c a l l y ) b e d e a l t w i t h i n a c l i m a t e of e x p a n d i n g
housing.
3.
N e a r l y 9 m i l l i o n h o u s e s ( s o m e t w o - t h i r d s of t h e t o t a l n u m b e r ) a r e
o c c u p i e d a t a r t i f l c i a l l y l o w r e n t s , a t a b o u t 6 / - t o 8 / - a we e k .
The economic
r e n t of a t y p i c a l n e w h o u s e t o d a y w o u l d b e a t l e a s t 3 0 / - a w e e k .
Making
t h e f u l l e s t a l l o w a n c e f o r d i f f e r e n c e s i n s t a n d a r d s , t h e c o n t i n u e d e x i s t e n c e of
t h i s l a r g e p o o l of h o u s e s a t f r o z e n r e n t s i s a d e t e r r e n t t o u n s u b s i d i s e d n e w
building and to house owning in g e n e r a l .
4.
S o m e h o u s e s a r e f a l l i n g o u t of u s e ; m a n y m o r e h o u s e s a r e f a l l i n g
o u t of r e p a i r , s i n c e i t i s n o t w o r t h w h i l e t o r e p a i r h o u s e s w h e n n o r e c o u p m e n t
c a n b e o b t a i n e d f r o m a n y i n c r e a s e in r e n t s t o o f f s e t t h e g r e a t i n c r e a s e i n t h e
c o s t of r e p a i r s .
5.
M a n y of t h e o l d e r h o u s e s a r e n o t w o r t h r e p a i r ; t h e p r o p e r f a t e f o r
them is demolition.
T o t h i s end we m u s t a s s o o n a s p o s s i b l e r e s u m e o u r
p r e - w a r c a m p a i g n for s l u m c l e a r a n c e and p r o v i d e for " r e h o u s i n g " a s a p a r t
of o u r h o u s i n g p r o g r a m m e .
6.
B u t t h e r e a r e m u c h l a r g e r n u m b e r s of h o u s e s w h i c h , if p r o p e r l y
m a i n t a i n e d , w i l l c o n t i n u e t o p r o v i d e good h o m e s f o r m a n y y e a r s t o c o m e .
T h e m a i n t e n a n c e of t h e s e h o u s e s b y t h e o w n e r s i n a p r o p e r s t a t e of r e p a i r
m u s t therefore be encouraged.
7.
I n c r e a s e s in r e n t s cannot be popular since t h e r e a r e m o r e t e n a n t s
than owners.
But it is only r e a s o n a b l e for o w n e r s to r e c e i v e and for
t e n a n t s t o p a y r e n t s w h i c h t a k e a c c o u n t of t h e c u r r e n t c o s t s of m a i n t a i n i n g
t h e i r h o u s e s i n a p r o p e r s t a t e of r e p a i r .
x A b o u t 4 m i l l i o n w h i c h h a v e b e e n c o n t i n u o u s l y u n d e r r e n t c o n t r o l s i n c e 1915
a r e l e t a t a n a v e r a g e of 6 / - p e r w e e k : a b o u t 4 ^ m i l l i o n w h i c h c a m e o u t of
c o n t r o l b e t w e e n 1919 a n d 1939 a n d w e r e r e c o n t r o l l e d i n 1939 a r e l e t a t a n
a v e r a g e r e n t of 8 / - a w e e k .
lQ
8.
It i s e q u i t a b l e t h e r e f o r e f o r r e n t s t o b e f i x e d o n t h i s b a s i s ; b u t a n y
i n c r e a s e s should not be payable u n l e s s or until the h o u s e s a r e in fact in a
proper s t a t e of r e p a i r .
9,
R a t i n g r e v a l u a t i o n ( o w i n g t o a f a t a l f l a w i n t h e 1948 A c t ) c a n n o t b e
o p e r a t i v e t i l l 1956 o r s o .
A s a long t e r m policy, r a t i n g valuation m i g h t
w e l l be taken as a b a s i s for fair r e n t s .
M e a n w h i l e , as a s h o r t t e r m policy, p r e s e n t r a t i n g valuation could
s e r v e a s a m e a s u r e for a l l o w i n g s o m e r e n t i n c r e a s e s b a s e d on the a l l o w a n c e
for r e p a i r s .
10.
U n d e r t h e e x i s t i n g l a w t h e f i g u r e on w h i c h r a t e s a r e a c t u a l l y p a i d i s
a r r i v e d at b y deducting f r o m the g r o s s value a figure b a s e d on the a s s u m e d
c o s t of r e p a i r s .
N e w l e g i s l a t i o n m i g h t a u t h o r i s e a n i n c r e a s e of r e n t u p t o
a n a m o u n t r e p r e s e n t i n g s o m e i n c r e a s e on t h i s f i g u r e .
F o r e x a m p l e on a
h o u s e w i t h a g r o s s v a l u e , of £ 2 1 t h e d e d u c t i o n a t p r e s e n t a l l o w a b l e f o r
d e t e r m i n i n g t h e n e t r a t e a b l e v a l u e i s £ 7 ; if t h e h o u s e i s a t p r e s e n t l e t
a t £ 2 1 , t h e a l l o w a b l e i n c r e a s e of r e n t m i g h t b e £ 7 , o n t h e b a s i s t h a t t h e
c o s t of r e p a i r s h a s c e r t a i n l y n o t b e e n l e s s t h a n d o u b l e t h e p r e - w a r a m o u n t .
I g i v e t h e s e f i g u r e s m e r e l y b y w a y of i l l u s t r a t i o n ,
I should like to r e s e r v e
for further consideration the actual figure to be adopted.
It w o u l d b e a c o n d i t i o n t h a t n o i n c r e a s e s i n r e n t w o u l d b e p a y a b l e
until the house had been certified by the Local Authority as being in a p r o p e r
t e n a n t a b l e s t a t e of r e p a i r .
It w o u l d b e a n e c e s s a r y p a r t of t h e s c h e m e t h a t t h e a d d i t i o n a l r e n t
a l l o w e d (being wholly for r e p a i r s ) s h o u l d not a t t r a c t ­
(a) a n y a d d i t i o n a l r a t i n g a s s e s s m e n t a n d t h e r e f o r e increased r a t e s , or (b) a n y a d d i t i o n a l S c h e d u l e A a s s e s s m e n t a n d t h e r e f o r e
increased tax.
11,
N a t u r a l l y , under such legislation, i n c r e a s e d r e n t s would be payable
forthwith (as soon a s the h o u s e s w e r e certified by the local authorities)
for t h o s e h o u s e s w h i c h , d e s p i t e the difficulties s i n c e 1939, h a v e in fact b e e n
adequately maintained by the o w n e r s .
My own e x p e c t a t i o n is t h a t the n u m b e r
of t h e s e h o u s e s w o u l d b e m u c h l a r g e r t h a n w o u l d b e s u g g e s t e d b y c o m m o n
report.
I n c r e a s e d r e n t s for o t h e r h o u s e s would n o doubt be s p r e a d o v e r a
n u m b e r of y e a r s , a s a n d w h e n o w n e r s found t h e m s e l v e s a b l e a n d w i l l i n g t o
c a r r y out r e p a i r s up to the s t a n d a r d n e c e s s a r y to obtain c e r t i f i c a t e s .
12,
If t h e C a b i n e t f e e l t h a t i t w o u l d b e w i s e t o d e a l w i t h t h i s p r o b l e m i n
1952/53 s e s s i o n , a s h o r t Bill on t h e s e lines could be r a p i d l y drafted.
I would
l e a v e o v e r t h e m a n y o t h e r c o m p l i c a t i o n s of r e n t r e s t r i c t i o n t i l l t h e 1 9 5 3 / 5 4
session.
13,
Such a r e n t policy should be a c c o m p a n i e d by a g r a d u a l r e o r i e n t a t i o n
of t h e n e w h o u s e b u i l d i n g p r o g r a m m e w h i c h a i m e d a t a n e x p a n s i o n of p r i v a t e
b u i l d i n g a n d a c o n c e n t r a t i o n of s u b s i d i s e d h o u s i n g o n s l u m c l e a r a n c e .
F a i r r e n t s ; m o r e council houses than the Socialists built; m o r e
private building; renewed s l u m clearance - they all hang together,
H.M.
M i n i s t r y of H o u s i n g a n d L o c a l
Government.
15TH S E P T E M B E R , 1952.