(c) crown copyright
Catalogue Reference:CAB/24/158
Image Reference:0007
DOOUjaBliT I S JHS PliOPAKTY OP HIS BRITANNIC MAJESTY S GOVERKMEHT,
r
CABINET.
3
Copy.No,
"
h
flIKTiSRIa
REPORT .0? THE COMMITTEE ON HOUSING- POLICY.
In view of the importance of beginning the
discussion with representatives of private enterprise and
of the local authorities at the earliest possible moment I
ask that thia matter be treated aa one of urgency, so that an
early decision on the question of state assistance may be taken.
A.G.B.
linistry
cf
Health,
W f e t h January,1923.
'
r:9
1
IETKRIM REP CRT UP THE COMMITTEE OH HOUSING.
1.
It
appears t o t h e Committee t h a t the s a l i e n t
the housing p r o b l e n as i t
e x i s t s to-day are
( a ) there i s s t i l l
faots
of
­
a l a r g e s h o r t a g e o f working
olass
houses;
( b ) t h e r e i s no p r o s p e o t i n the near f u t u r e o f
private
e n t e r p r i s e unaided u n d e r t a k i n g the p r o v i s i o n o f
true
working o l a s s houses i n sufficfisttts numbers * and
( o ) i t w i l l be n e c e s s a r y t o o o n t i n u e the Rent
Act f o r a f u r t h e r
Restrictions
period.
2.
The e x t e n t o f
the s h o r t a g e o f w o r k i n g c l a s s houses
difficult
to d e t e r t o i n e , but the Committee a r e s a t i s f i e d
p r o v i s i o n made under t h e S t a t e scheneB i n t h e l a s t
is
that
the
f o u r y e a r s has I
done l i t t l e a c r e than keep paOe w i t h the n o r n a l annual demand and I
that a considerable a r r e a r s t i l l
remains t o be made g o o d .
The
i
evidence of the l o c a l a u t h o r i t i e s of
the l a r g e towns i s
need i d s t i l l
them have l o n g l i s t s
v e r y a o u t e and moot o f
a p p l i c a n t s f o r new hbuses whoa they a^e unable t o
3.
that
of
satisfy,
The o o s t o f b u i l d i n g has f a l l e n v e r y c o n s i d e r a b l y
during
the l a s t y e a r and p r i v a t e e n t e r p r i s e i o o e r t a l n l y r e t u r n i n g
to house b u i l d i n g .
again
A t p r e s e n t , h o w e v e r , the type o f house being
b u i l t by p r i v a t e e n t e r p r i s e i s g e n e r a l l y
the working o l a s s house.
It
definitely
i s true that o e r t a i n
oompanies a r e p r o o e e d i n g t o b u i l d houses f o r
but t h e s e hcuseB a r e t o be l e t
eccnonlo r e n t ,
the
their
3uperior
to
oolliery
workpeople,
t o t h e miners a t l e s s than the
the l o s s b e i n g borne by t h e companies as p a r t
t h e i r costs of ooal production.
There 1B no near p r o s p e c t
a c t i o n on those l i n e s beooming so w i d e s p r e a d as
to deal with the general
Private
enterprise w i l l
sees a p r o s p e c t o f p r o f i t ,
provide a s u f f i c i e n t
of
effectively
s h o r t a g e and such a c t i o n w i l l n o t
any e v e n t touch t h e problem o f t h e l a r g e
of
in
towns.
i n f a c t o n l y o p e r a t e where
it
and even b e f o r e t h e war i t f a i l e d
to
supply o f houses f o r the l o w e r p a i d workmer.
- 1 ­
Today t h e b u i l d i n g o f t h e s m a l l e s t t y p e o f house i s w t i l l
attractive,
less
s i n c e t h e p o i n t has n o t been reached at which t h e s e
houses can b e p r o v i d e d w i t h o u t l o s s .
And w h i l e the b u i l d i n g
of
l o w e r m i d d l e c l a s s h o u s e s , by adding t o t h e p o o l o f accommodation,
must have an i n d i r e c t
effect
i n m i t i g a t i n g t h e s h o r t a g e of
small
h o u s e s , t h i s l e v e l l i n g up p r o c e s s must i n e v i t a b l y be s l o w .
The Committee understand from Lord Onslow, t h e Chairman
cf
t h e Committee on t h e Rent R e s t r i c t i o n s A c t , t h a t t h a t Committee
w i l l f i n d t h e m s e l v e s c o m p e l l e d t o recommend a continuance o f t h e
Act.
I t i s hoped t h a t
certain classes
it
w i l l be p r a c t i c a b l e g r a d u a l l y t o remove
o f Mouses from t h e p r o t e c t i o n of t h e A c t s w i t h a
v i e w t o paving the way t o g e t t i n g r i d o f t h e Act a l t o g e t h e r ,
speaking g e n e r a l l y i t
operative for
is
but
a n t i c i p a t e d t h a t t h e Act must remain
at l e a s t one and p r o b a b l y two y e a r s l o n g e r from t h e
24th o f June n e x t .
The Committee a p p r e c i a t e f u l l y t h e g r a v e o b j e c t i o n s
to
Any
embarking on any new scheme o f s u b s i d i s i n g house b u i l d i n g .
such scheme w i l l p r o b a b l y o p e r a t e a g a i n s t a r e d u c t i o n of r a t e s
wages i n t h e b u i l d i n g i n d u s t r y which are at p r e s e n t
dispropor­
t i o n a t e l y h i g h as compared w i t h wages i n o t h e r i n d u s t r i e s .
i s a p o s s i b i l i t y t h a t a new scheme, even i f
h o u s e s , w i l l chock t h e f a l l
prejudicial
effect
next l a r g e r c l a s s
of
There
l i m i t e d t o the s m a l l e s t
of p r i c e s and may c o n s e q u e n t l y have a
on t h e r e v i v a l
of hous e s .
If
of private enterprise in the
a scheme i s
adopted f o r a
l i m i t e d p e r i o d t h e p o s i t i o n at t h e end s f t h a t p e r i o d may be no
b e t t e r than i t
Indefinitely
i s to-day,
and t h e p r e s s u r e on the S t a t e t o c o n t i n u e
s u b s i d i s i n g t h e p r o v i s i o n o f houses f o r t h e
poor may w e l l be c o n s i d e r a b l e .
And t h e r e i s ,
very
of c o u r s e , the
s t r o n g o b j e c t i o n o f making any a d d i t i o n t o t h e Exchequer's
present
burdens.
The Committee a r e v e r y s e n s i b l e of t h e weight o f such
considerations
as t h e s e .
But i t
still
seems t o them t h a t t h e
Government cannot simply a l l o w t h i n g s t c remain as they
t r u s t i n g t o px-ivate e n t e r p r i s e and t h e unaided e f f o r t s
are,
of
local
Today t h e b u i l d i n g o f t h e s m a l l e s t t y p e o f house i s w t i l l
attractive,
less
s i n c e t h e p o i n t has n o t been r e a c h e d at which t h e s e
houses can b e p r o v i d e d w i t h o u t l o s s .
of
And w h i l e the b u i l d i n g
l o w e r m i d d l e c l a s s h o u s e s , b y adding t o the p o o l o f accommodation,
must have an i n d i r e c t
effect
i n m i t i g a t i n g the shortage of
h o u s e s , t h i s l e v e l l i n g up p r o c e s s must i n e v i t a b l y be
4.
slow
small
w
The Committee understand from Lord Onslow, t h e Chairman
of the Committee on t h e Rent R e s t r i c t i o n s A c t , that that Committee
w i l l f i n d themselves c o m p e l l e d t o recommend a continuance of the
Act.
I t i s hoped t h a t i t w i l l b e p r a c t i c a b l e g r a d u a l l y t o remove
certain classes
o f houses from t h e p r o t e c t i o n o f t h e A c t s w i t h a
v i e w t o paving t h e way t o g e t t i n g r i d o f t h e A c t a l t o g e t h e r ,
speaking g e n e r a l l y i t
operative for
is
but
a n t i c i p a t e d t h a t t h e A c t must remain
at l e a s t one and p r o b a b l y two y e a r s l o n g e r from t h e
24th o f June n e x t .
5.
to
The Committee a p p r e c i a t e f u l l y t h e g r a v e o b j e c t i o n s
embarking on any new scheme o f s u b s i d i s i n g house b u i l d i n g .
Any
such scheme w i l l p r o b a b l y o p e r a t e a g a i n s t a r e d u c t i o n of r a t e s
wages i n t h e b u i l d i n g i n d u s t r y which are at p r e s e n t
dispropor­
t i o n a t e l y h i g h as compared w i t h wages i n o t h e r i n d u s t r i e s .
i s a p o s s i b i l i t y t h a t a new scheme, e v e n i f
effect
next l a r g e r c l a s s
There
l i m i t e d t o the
smallest
o f p r i c e s and may c o n s e q u e n t l y have a
h o u s e s , w i l l chock t h e f a l l
prejudicial
of
on t h e r e v i v a l
of h o u s e s .
If
of private e n t e r p r i s e i n the
a scheme i s adopted f o r
a
l i m i t e d p e r i o d t h e p o s i t i o n at t h e end o f t h a t p e r i o d may be no
b e t t e r than i t
Indefinitely
i s to-day,
and t h e p r e s s u r e on t h e S t a t e t o c o n t i n u e
s u b s i d i s i n g the. p r o v i s i o n o f houses f o r t h e
poor may w e l l be c o n s i d e r a b l e .
very
And t h e r e i s , o f c o u r s e , t h e
s t r o n g o b j e c t i o n o f making any a d d i t i o n t o t h e Exchequer*s
present
burdens,
6.
The Committee a r e v e r y s e n s i b l e o f t h e w e i g h t o f such
considerations
as t h e s e .
But i t
still
seems t o them t h a t
Government cannot simply a l l o w t h i n g s t c remain as t h e y
t r u s t i n g t o p r i v a t e e n t e r p r i s e and the unaided e f f o r t s
the
are,
of
local
authorities gradually
Assuming,
continuance
t o r i g h t the
position.
a3 t h e y must assume,
that a p r o p o s a l f o r
t e m p o r a r i l y o f t h e Rent R e s t r i c t i o n s A c t w i l l
the
have
to be made t o P a r l i a m e n t , t h e Committee do not see how the
Government, w h i l e
thus a d m i t t i n g shortage o f houae accommodation,
can a t the same time r e p u d i a t e
to m i t i g a t e
the r e s p o n s i b i l i t y
t h a t s h o r t a g e d u r i n g the p e r i o d
of
of doing anything
the e x t e n s i o n
of
the A c t .
The Committee have had v a r i o u s p r o p o s a l s f o r
housing under r e v i e w b u t they f e e l
and f i n a l p r o p o s a l s ,
that b e f o r e
assisting
t h e y make c o n c r e t e
they must ask f o r a C a b i n e t d e c i s i o n on the
q u e s t i o n o f p r i n c i p l e whether or n o t t h e r e
i s t o be
further
Government a s s i s t a n c e .
If
the C a b i n e t d e c i d e t h i s q u e s t i o n i n the
the Committee have i n mind p r o p o s a l s on the f o l l o w i n g
(a)
The scheme to be d e f i n i t e l y
limited
affirmative
lines
t o the p e r i o d
continuance o f t h e Rent R e s t r i c t i o n s A c t , and a
d a t e to be l a i d down and adhered
of
(b)
the
of
definite
termination
that A c t .
The S t a t e f i n a n c i a l commitment t o be s t r i c t l y
t o an annual c h a r g e n o t e x c e e d i n g
(o)
to f o r
­
Assistance
private
t o be a f f o r d e d
enterprise
(say)
limited
£850,000,
to l o c a l a u t h o r i t i e s and
( t h r o u g h the l o c a l
authorities)
on t h e same t e r m s .
(d)
The b a s i s o f a s s i s t a n c e
t o be on the l i n e s of
the
scheme proposed by S i r A l f r e d Mond which proposed an
annual S t a t e c o n t r i b u t i o n o f £3 a house f o r 60 y e a r s
towards the l o s s on housing schemes.
(6)
This scheme t o be m o d i f i e d
assistance
if
by r e d u c i n g the p e r i o d
of
p o s s i b l e below the term o f 60 y e a r s , and
a l s o by l i m i t i n g
the g r a n t o f a s s i s t a n c e
t o the
smallest
type o f house, the type which p r i v a t e e n t e r p r i s e unaided
is least likely
to undertake.
b5
8.
It
seems t o the Committee t h a t
p r o p o s a l s on t h e s e
l i n e s a r e l i k e l y t o cause t h e minimum of i n t e r f e r e n c e
private enterprise.,
Before putting forward f i n a l
with
proposals,
t h e Committee w i l l recy. i r e t o d i s c u s s w i t h r e p r e s e n t a t i v e s
of
p r i v a t e e n t e r p r i s e and l o c a l a u t h o r i t i e s t h e p r e c i s e e x t e n t
a s s i s t a n c e p e r house which w i l l he n e e d e d , f o r I t
is
of
of
course
e s s e n t i a l t o ensure t h a t t h e Government p l a n w i l l b e worked and
w i l l r e s u l t i n tho p r o v i s i o n of housec.
A l f r e d Mond's scheme would
two y e a r s .
If
At £3 a house S i r
have produced some 80,000 houses i n
i n the process o f n e g o t i a t i o n b e t t e r terms
are
found t o be n e c e s s a r y , t h e n t h e Committee would propose
to
reduce t h e number of houses t o b e p r o v i d e d ,
total
f i n a n c i a l committment i s n o t
9.
so t h a t t h e
increased.
The Committee propose t o recommend i n a d d i t i o n , w i t h a
view t o a s s i s t i n g
facilities
the r e v i v a l
of
private enterprise,
that
should be p r o v i d e d f o r l e n d i n g money t o b u i l d e r s
t h e l o w e s t r a t e which does not I n v o l v e s u b s i d y , and t h a t
at
the
Small D w e l l i n g s A c q u i s i t i o n Apt should be amended I n o r d e r t o
encourage f u r t h e r t h e p r o v i s i o n o f houses f o r t h e owner
occupier.
P r o p o s a l s on t h e s e l i n e s w i l l be undoubtedly
but t h e Committee are s a t i s f i e d t h a t t h e i r c o n t r i b u t i o n
useful,
cowards
m e e t i n g the p r e s s i n g need o f houses w i l l n o t b e so
c o n s i d e r a b l e as t o o b v i a t e t h e need o f o t h e r m e a s u r e s .
10.
The Committee hope t o submit i n a d d i t i o n
proposals f o r f a c i l i t a t i n g
further
d e a l i n g w i t h t h e slvun p r o b l e m .