(c) crown copyright
Catalogue Reference:CAB/129/63
Image Reference:0001
Printed
for the Cabinet.
September
RECORD
SECRET
1953.
Copy N o .
COPY
C. (53) 2 5 1
11th
September,
1953
CABINET
HOUSING
MEMORANDUM
BY
THE
POLICY
SECRETARY
OF
STATE
FOR
SCOTLAND
I a t t a c h a draft Scottish W h i t e P a p e r o n h o u s i n g policy t o b e c o n s i d e r e d
t o g e t h e r w i t h the p a p e r b y the M i n i s t e r of H o u s i n g a n d L o c a l G o v e r n m e n t already
circulated u n d e r cover of C . (53) 219. L i k e his draft, m i n e is n o t in final f o r m .
2. T h e r e h a v e been discussions b e t w e e n u s , b u t there are several p o i n t s of
s u b s t a n c e o n w h i c h w e differ. S o m e of t h e differences c a n b e justified by different
c i r c u m s t a n c e s : o t h e r s will b e difficult to defend.
I . — D I F F E R E N C E S ON R E N T
PROPOSALS
3. T h e Minister of H o u s i n g refers t o these differences in his m e m o r a n d u m
( p a r a g r a p h s 3-12). T h e m a i n o n e arises on t h e e x p e n d i t u r e test—the q u e s t i o n
w h e t h e r t h e o w n e r s h o u l d h a v e t o spend a qualifying s u m o n repairs before raising
the rent.
;
4. I feel t h a t such a c o n d i t i o n w o u l d m a k e m y Bill u n w o r k a b l e .
Scottish
o w n e r s h a v e lost m u c h of their i n c o m e s b e c a u s e of increases in o w n e r s ' rates. I t
will b e difficult e n o u g h for m o s t of t h e m to p a y for t h e actual r e p a i r s t h a t a r e
necessary t o p u t their houses in g o o d a n d t e n a n t a b l e r e p a i r w i t h a view t o claiming
t h e r e n t increase. T h e y s h o u l d b e e x p e c t e d to s p e n d only w h a t is necessary, n o t
a n a r b i t r a r y qualifying s u m w h i c h m a y be m o r e or less t h a n this. W h e r e t h e h o u s e s
a r e a l r e a d y in r e p a i r , the o w n e r s deserve t h e increase at once a n d s h o u l d n o t b e
denied it until they s p e n d further m o n e y .
5. T h e r e n t increases will b e staggered, in Scotland anyway, b e c a u s e m o s t
o w n e r s will.have repairs to d o first a n d t h e y will t a k e different periods to d o t h e m .
T h e t e n a n t s will see these r e p a i r s being d o n e a n d the increases will b e associated
in their m i n d s with these r e p a i r s .
6. If Scottish o w n e r s w e r e r e q u i r e d t o satisfy a n a r b i t r a r y e x p e n d i t u r e test
in a d d i t i o n to p u t t i n g their h o u s e s in repair, I fear t h a t m a n y of t h e m w o u l d b e
d i s c o u r a g e d a n d disgruntled a n d w o u l d a b a n d o n all idea of trying to k e e p their
houses in repair. T h i s w o u l d merely a g g r a v a t e a p r o b l e m w h i c h is a l r e a d y
extremely difficult a n d a d d further t o the prospective b u r d e n s of t h e local authorities
a n d the E x c h e q u e r .
7. F u r t h e r , since t h e r e n t increase is to e n a b l e o w n e r s t o c a r r y o u t r e p a i r s
in future, I t h i n k t h a t if an initial e x p e n d i t u r e test w e r e a d o p t e d , t h e r e w o u l d b e
strong p r e s s u r e to m a k e it a continuing
test. (The Minister of W o r k s h a s a l r e a d y
suggested such a test in his m e m o r a n d u m C . (53) 2 3 0 , p a r a g r a p h 11.) T h e case
for s u c h a.test w o u l d n o t b e easy t o resist, b u t it w o u l d lead t o a greater disinclina­
tion o n t h e p a r t of o w n e r s to p u t their houses in repair.
8. T h e a m o u n t of t h e r e n t increase i n E n g l a n d a n d W a l e s is so calculated a s
to c o m p e n s a t e t h e o w n e r for t h r e e - q u a r t e r s of t h e increase in r e p a i r costs since
1939. I d o n o t believe t h a t Scottish o w n e r s c a n fairly b e expected t o b e a r a n y
p a r t of t h e increased cost of r e p a i r s . I p r o p o s e , therefore, t o give t h e m , in t h e
44807
"
B
increased rent, the whole of the increase in r e p a i r costs. This m e a n s a 40 per cent,
increase in r e n t s : t h r e e - q u a r t e r s of t h e increase i n r e p a i r costs w o u l d m e a n a
3 3 ^ per cent, increase in rents. A s t h e Minister of H o u s i n g suggests, this difference
can b e justified, b u t our critics will n o t fail to t a k e t h e p o i n t .
II.-DIFFERENCES
ON P R O P O S A L S FOR D I L A P I D A T E D PROPERTY
9. M y draft W h i t e P a p e r also differs f r o m t h e Minister'? as r e g a r d s the
p r o p o s a l s for dealing with d i l a p i d a t e d p r o p e r t y , in t h r e e i m p o r t a n t r e s p e c t s : ­
(A) I d o n o t p r o p o s e to redefine t h e t e r m " f i t n e s s for h u m a n h a b i t a t i o n . "
( P a r a g r a p h s 56 a n d 57 of t h e M i n i s t e r ^ draft W h i t e Paper.)
(B) I d o n o t t h i n k it necessary to h a v e a f o r m u l a for circulating t h e " r e a s o n ­
able expense " which a n o w n e r c a n be expected t o incur to m a k e a
h o u s e fit. ( P a r a g r a p h 58 of the M i n i s t e r ^ draft W h i t e Paper.)
(C) I feel t h a t I m u s t be able to say t h a t w h e r e a local a u t h o r i t y t a k e over a
h o u s e that, they will need to keep for a long time, they s h o u l d n o t only
m a k e t h e h o u s e " m o r e tolerable " b u t s h o u l d m a k e it fit if this c a n be
d o n e at r e a s o n a b l e e x p e n s e to the a u t h o r i t y , h a v i n g r e g a r d t o t h e life
of t h e h o u s e . ( P a r a g r a p h s 40 a n d 42 of t h e M i n i s t e r ^ draft W h i t e
Paper.)
'
!
10. T h e s e differences m a y b e to s o m e extent differences of a p p r o a c h r a t h e r
t h a n s u b s t a n c e : nevertheless, I t h i n k it right t o d r a w a t t e n t i o n to t h e m .
A-The
Question
of Defining
" Fitness
for Human
Habitation
"
11. I n the industrial areas there is a vast m a s s of old out-of-date p r o p e r t y ,
m u c h of it in the typical Scottish " t e n e m e n t " of t h r e e a n d four storeys, massively
built, difficult to alter, difficult even to k n o c k d o w n . F o r years rising r e p a i r costs
a n d t h e peculiar Scottish b u r d e n of o w n e r ' s rates h a v e left t h e owners of m a n y
of these houses little, s o m e t i m e s literally n o t h i n g , b y w a y of r e t u r n . As a result,
m a n y houses are in serious disrepair a n d even t h e r e n t increase will often seem
a n i n a d e q u a t e incentive t o the o w n e r s t o p u t things r i g h t (the a p p e n d i x to m y
W h i t e P a p e r illustrates t h e financial p o s i t i o n of these owners).
12. T h e r e are m a n y t h o u s a n d s of houses in S c o t l a n d i n m o r e or less the
s a m e condition of serious d i s r e p a i r : in G l a s g o w alone, there are at least 50,000
a n d p e r h a p s even .100,000. N o local a u t h o r i t y in the industrial areas c a n deal
w i t h m o r e t h a n a m i n o r i t y of these houses, even in five or ten years. F o r o t h e r
local authorities elsewhere in Scotland'—some of the smaller b u r g h s , for e x a m p l e ­
the p r o b l e m is relatively m u c h smaller. T h e y c o u l d see their w a y to demolishing
Or acquiring a n d p a t c h i n g all their b a d houses in a few years.
- 13. It follows t h a t t h e s t a n d a r d of fitness a c c e p t e d b y local authorities will
v a r y from area to area. S o m e local authorities will b e acquiring a n d p a t c h i n g ,
even demolishing, houses i n a c o n d i t i o n which o t h e r local authorities perforce will
b e accepting as fit for years to c o m e because they h a v e m u c h worse houses t o deal
with first.
14. A s r e g a r d s r e n t t h e M i n i s t e r says ( p a r a g r a p h 61 of his draft W h i t e P a p e r )
t h a t t h e o w n e r is n o t t o g e t the i n c r e a s e unless h e m a k e s t h e h o u s e fit a n d in g o o d
a n d t e n a n t a b l e repair.
15. H o u s e s can b e c o n d e m n e d as unfit, b r o a d l y s p e a k i n g , either because Of
very serious disrepair or b e c a u s e of s a n i t a r y defects. M y p r o p o s a l s w o u l d e n a b l e
t h e t e n a n t t o w i t h h o l d p a r t of t h e r e n t if the h o u s e is n o t in r e p a i r . B u t the sanitary
defects are often i n h e r e n t — t h e y w e r e there w h e n t h e t e n a n t t o o k the house, a n d
t h e y m a y indeed b e i r r e m e d i a b l e . I t c a n b e a r g u e d therefore that t h e fitness or
otherwise of t h e h o u s e w h e n it h a s n e v e r v a r i e d is n o t r e l e v a n t t o the question of
increasing r e n t .
16. T h e r e p a i r bills o n h o u s e s with i n h e r e n t defects h a v e gone u p as o n o t h e r
h o u s e s a n d so long as these defective houses are n e e d e d it is in everybody's interest
t h a t t h e owners should get the r e n t increase to e n a b l e t h e m to k e e p t h e i r houses in
repair.
- '­
17. F o r these r e a s o n s I d o n o t t h i n k t h a t a n e w definition of fitness is necessary
or desirable in Scotland t o d e t e r m i n e either (i) w h i c h houses s h o u l d b e dealt with
b y t h e local a u t h o r i t y or (ii) w h i c h rents s h o u l d b e raised.
18. I p r o p o s e to leave t h e existing definition, o r lack of definition, alone a n d
t o rely o n t h e local authorities a n d t h e c o u r t s using c o m m o n sense, as they h a v e
d o n e in t h e past, a n d a p p l y i n g s t a n d a r d s a p p r o p r i a t e t o the local circumstances.
I t a k e this line m o r e readily in t h a t , u n l i k e the Minister of H o u s i n g a n d L o c a l
G o v e r n m e n t , I h a v e h a d n o strong r e p r e s e n t a t i o n s from local authorities as t o t h e
n e e d for a n e w definition.
B.—-" Reasonable
Expense
" for the Owner
to make Houses
Fit
19. I n Scotland t h e net r e t u r n to o w n e r s f r o m m a n y houses is so l o w t h a t
even w i t h r e n t increases t h e r e t u r n w o u l d n o t b e sufficient t o enable t h e m to r e c o v e r
a n y s u b s t a n t i a l e x p e n d i t u r e they i n c u r r e d o n w o r k s to m a k e a h o u s e fit. A n y
s u b s t a n t i a l e x p e n d i t u r e , therefore, w o u l d b e u n r e a s o n a b l e from the o w n e r s ' p o i n t
of view.
20. M o r e o v e r , t h e existing Scottish l a w c o n t a i n s a special provision t h a t
w h e r e the local a u t h o r i t y seek to r e q u i r e a n o w n e r t o m a k e his h o u s e fit, he m a y
i n s t e a d ask t h e m to m a k e o n order for t h e demolition or closing of his h o u s e .
T h i s t h e local a u t h o r i t y c a n n o t u n r e a s o n a b l y refuse. This provision is a n a d e q u a t e
safeguard for t h e Scottish owner, a n d t h e r e is n o a d v a n t a g e t o h i m in defining
" reasonable expense."
2 1 . I n these circumstances, a n d since t h e r e h a s b e e n little or n o t r o u b l e in
Scotland w i t h o u t a definition, I prefer n o t t o lay d o w n a n y h a r d a n d fast f o r m u l a
for d e t e r m i n i n g t h e a m o u n t t h a t the o w n e r can r e a s o n a b l y be e x p e c t e d t o s p e n d .
C . — H o w much
is the Local
Authority
to do to Houses
in
fake-overs?
22. T h e h o u s e s w h i c h a local a u t h o r i t y takes over will b e , for t h e most p a r t ,
h o u s e s w h i c h t h e o w n e r c a n n o t m a k e fit at r e a s o n a b l e e x p e n s e to him. B u t in
Scotland it w o u l d n o t b e right to say, as t h e M i n i s t e r says in p a r a g r a p h 42 of his
draft p a p e r , t h a t all these houses are b y definition " irretrievably unfit." This m a y
b e so for t h e o w n e r , b u t it is n o t necessarily so for t h e local a u t h o r i t y . T h e o w n e r
h a s only his o w n r e s o u r c e s ; h e has little or n o p r o s p e c t of a r e t u r n for his m o n e y ,
and, often, h e h a s n o r e a l interest n o w in preserving his asset at all. T h e local
a u t h o r i t y o n t h e o t h e r h a n d h a s either t o k e e p t h e h o u s e or incur a very h e a v y
financial liability in replacing it by a n e w o n e . O n s o m e of t h e houses, therefore,
an e x p e n d i t u r e u n r e a s o n a b l e for the o w n e r will b e r e a s o n a b l e e n o u g h for the local
authority.
2 3 . A l s o , s o m e of t h e houses w h i c h local authorities t a k e over in Scotland
will h a v e t o r e m a i n occupied for a great m a n y y e a r s . T h e local a u t h o r i t y will n o t
w a n t t o d o less t h a n m a k e these h o u s e s fit; t h e p r e s s u r e f r o m t e n a n t s will b e
overwhelming.
24. T h e w h o l e p u r p o s e of the m e a s u r e s we a r e considering is t o p r e s e r v e t h e
stock of o l d e r h o u s e s as far as is r e a s o n a b l y practicable. I feel I m u s t be able t o
say t h a t w h e r e h o u s e s will h a v e t o r e m a i n occupied for a long t i m e it is the G o v e r n ­
m e n f s i n t e n t i o n that the local a u t h o r i t y s h o u l d m a k e such houses fit, w h e r e v e r t h e
e x p e n s e is r e a s o n a b l e h a v i n g r e g a r d t o t h e life of t h e h o u s e . I c a n n o t c o n t e m p l a t e
p r o v i d i n g for t h e local a u t h o r i t y merely p a t c h i n g t h e m where it could r e a s o n a b l y
d o m o r e . I n d e e d , I t h i n k t h a t w e o u g h t t o give t h e local a u t h o r i t y a n incentive t o
d o m o r e a n d this aspect is b e i n g discussed w i t h t h e T r e a s u r y a n d t h e M i n i s t r y of
Housing and Local Government:
.'
I I I . — R E N T S OF COUNCIL
HOUSES
( P a r a g r a p h s 1 6 - 2 0 of C. (53) 219)
25. L i k e t h e Minister, I recognise t h a t the r e n t s of C o u n c i l h o u s e s are n o t
w h a t they s h o u l d b e . I m u s t a d m i t t h a t in this respect t h e r e c o r d of the Scottish
local a u t h o r i t i e s l o o k s even worse t h a n t h a t of English local authorities. T h e r e
are a l r e a d y signs, h o w e v e r , t h a t local authoriti.es/are being c o m p e l l e d b y financial
p r e s s u r e t o raise their rents.. A n increase in the r e n t s of privately-owned houses
will h e l p this tendency.
44807
B 2
26. I a m very doubtful w h e t h e r it would be wise t o try t o accelerate t h e
t e n d e n c y b y a m e n d i n g the law. W e should lay ourselves o p e n to t h e c h a r g e t h a t
w e a r e t a k i n g a w a y t h e c o m p l e t e freedom which local authorities n o w h a v e t o
fix their o w n r e n t s . I should prefer t o try to achieve administratively w h a t e v e r
w e decide s h o u l d b e d o n e . E v e n t h e n , I think t h a t any g u i d a n c e we give local
authorities w o u l d h a v e to b e v e r y carefully presented.
27. I h a v e p u t n o t h i n g i n t o m y W h i t e P a p e r o n this subject for the m o m e n t ,
b u t I shall consider very carefully w h a t e v e r p r o p o s a l the Minister p u t s f o r w a r d ,
since in this m a t t e r it seems difficult t o justify any difference between the t w o
countries:
J. S.
Scottish
Office,
9th September,
1953.
DRAFT
WHITE
PAPER
ON
HOUSING P O L I C Y - S C O T L A N D
Introduction .
T h e p u r p o s e of this p a p e r is to outline the p r e s e n t h o u s i n g p o s i t i o n in Scotland
a n d t o i n d i c a t e the further m e a s u r e s which H e r M a j e s t y V G o v e r n m e n t consider
necessary t o d e a l w i t h it.
2. Since t h e w a r local authorities h a v e been e n c o u r a g e d , as a first step in the
i m p r o v e m e n t of h o u s i n g c o n d i t i o n s , t o c o n c e n t r a t e o n the building of a d d i t i o n a l
houses so that e a c h family m a y h a v e a s e p a r a t e h o m e of its o w n . A l t o g e t h e r [
]
p e r m a n e n t houses a n d [
] t e m p o r a r y houses, m a k i n g a t o t a l of [
J n e w dwel­
lings, h a v e b e e n built in S c o t l a n d since t h e w a r ; a n d building is a t present proceeding
at the r e c o r d r a t e of [
] houses a year. T h e extent t o w h i c h local authorities h a v e
n o w m e t the s h o r t a g e of h o u s e s varies from district t o district:, in m a n y of the
smaller districts substantial r e d u c t i o n s h a v e b e e n m a d e in t h e w a i t i n g lists; in others,
m u c h r e m a i n s to b e d o n e .
3. So long as large n u m b e r s of families h a v e n o s e p a r a t e h o m e s of their own,
t h e b u i l d i n g of a d d i t i o n a l h o u s e s t o r e d u c e the s h o r t a g e m u s t r e m a i n t h e p r i m a r y
a i m of h o u s i n g policy. H e r Majesty's G o v e r n m e n t p r o p o s e , therefore, t h a t the
building of a d d i t i o n a l h o u s e s s h o u l d b e c o n t i n u e d t o t h e fullest extent t h a t the
r e s o u r c e s of l a b o u r a n d m a t e r i a l s will allow. B u t they consider t h a t the time has
n o w c o m e w h e n steps s h o u l d also be t a k e n to d e a l w i t h t h e b a d c o n d i t i o n s which
exist i n m a n y of the older h o u s e s .
Condition of Existing H o u s e s
4. T h e i m p o r t a n t place occupied b y the o l d e r houses i n the n a t i o n a l housing
s t r u c t u r e can b e m e a s u r e d from these a p p r o x i m a t e f i g u r e s : —
Percentage
of whole
H o u s e s built before 1880
...
...
600,000
41
H o u s e s built b e t w e e n 1880 a n d 1914 ...
320,000
22
H o u s e s built b e t w e e n 1915 a n d 1944 ...
366,000
24
H o u s e s built b e t w e e n 1945 a n d 1951 ...
188,000
13
1,474,000
100
5. T h e s e figures s h o w t h a t two-fifths of t h e p o p u l a t i o n are living in houses
over 70 years old a n d the m a j o r i t y in h o u s e s over 40 years old. It is plainly in the
n a t i o n a l interest t h a t so far as possible these older houses s h o u l d b e m a i n t a i n e d i n
g o o d r e p a i r so long as they are n e e d e d a n d t h a t w h e r e i m p r o v e m e n t s c a n bring
t h e m u p t o d a t e a t a r e a s o n a b l e cost, t h e y s h o u l d b e i m p r o v e d . V e r y few houses
t o r e n t h a v e b e e n built in S c o t l a n d by p r i v a t e o w n e r s since 1914. N e a r l y all the
750,000 p r i v a t e l y o w n e d h o u s e s t h a t a r e let a r e a m o n g t h e 920,000, houses that
d a t e f r o m before 1914 a n d m a n y of t h e m were built before 1880. *
6. T h e r e h a s been n o r e c e n t survey in S c o t l a n d to ascertain the physical
c o n d i t i o n of h o u s e s . T h e y c a n , h o w e v e r , b e divided into t h r e e b r o a d categories.
A t the o n e e n d of t h e scale are h o u s e s built to m o d e r n s t a n d a r d s w i t h g o o d equip­
m e n t a n d in g o o d repair. Practically all local a u t h o r i t y h o u s e s , which constitute
t h e g r e a t bulk of t h e houses since 1914, are i n this class. A t t h e o t h e r e n d are
houses so w o r n o u t t h r o u g h age a n d disrepair t h a t they s h o u l d b e k n o c k e d d o w n
as s o o n as p o s s i b l e : b e t w e e n these t w o extremes a r e houses which are capable,
w i t h r e p a i r s , a n d s o m e t i m e s i m p r o v e m e n t , of a c o n s i d e r a b l e further p e r i o d of
useful life.
7. I n a d d i t i o n , therefore, t o the building of n e w houses to reduce the h o u s i n g
s h o r t a g e , any c o m p r e h e n s i v e p l a n w h i c h aims at dealing w i t h S e o t l a n d Y h o u s i n g
c o n d i t i o n s as a w h o l e m u s t include m e a s u r e s (a) for t h e r e p a i r a n d i m p r o v e m e n t of
existing h o u s e s w h i c h c a n b e m a d e to p r o v i d e g o o d a n d t e n a n t a b l e a c c o m m o d a t i o n ,
a n d (b) for dealing with t h o s e h o u s e s w h i c h are unfit t o live i n i n their present state.
H e r Majesty's G o v e r n m e n t h a v e f o r m u l a t e d the following p r o p o s a l s with this e n d
in view. F o r t h e r e a s o n s given a b o v e they affect a l m o s t exclusively the privately
o w n e d houses.
Repair and Maintenance: The Present Situation
8. D u r i n g t h e w a r r e p a i r a n d m a i n t e n a n c e w o r k w a s severely curtailed and
in t h e p o s t - w a r years it has n o t b e e n r e s u m e d o n a n y t h i n g like a full scale. A s a
result, t h e r e is n o w a n a c c u m u l a t i o n of disrepair which, if n o t dealt with, m u s t lead
to t h e progressive d e t e r i o r a t i o n of h o u s e s f o r m i n g a v a l u a b l e n a t i o n a l asset.
9. T h i s situation is a t t r i b u t a b l e t o t w o m a i n factors. First, there h a s b e e n
a steep a n d progressive rise in the cost of repairs since 1939. Secondly, since the
rents of h o u s e s w e r e controlled, in s o m e cases as long ago as 1920, u n d e r t h e R e n t
,arid M o r t g a g e Interest Restrictions A c t s , t h e r e h a s b e e n a steady increase i n m o s t
districts in t h e a m o u n t of o w n e r s ' r a t e s . I n t h e case of houses controlled u n d e r
these Acts, therefore, o w n e r s h a v e b e e n faced w i t h rising r e p a i r costs a n d a p r o ­
gressively diminishing n e t i n c o m e w i t h w h i c h t o m e e t t h e m . T h e effect o n rent
i n c o m e s of these higher r e p a i r costs a n d higher"owners' r a t e s m a y be seen f r o m the
e x a m p l e s given in the Appendix..
;
10. H e r Majesty's G o v e r n m e n t consider t h a t a n y solution of the p r o b l e m
of h o u s e r e p a i r s m u s t , t h e r e f o r e , deal w i t h b o t h r e n t s a n d t h e r a t i n g system. T h e i r
p r o p o s a l s a r e explained in t h e following p a r a g r a p h s . Briefly, they are (i) t h a t the
r e n t s of c o n t r o l l e d houses in S c o t l a n d s h o u l d b e increased b y a n a m o u n t reflecting
the rise in t h e cost of repairs since 1939, a n d (ii) t h a t steps s h o u l d be t a k e n t o e n s u r e
t h a t t h e a d d i t i o n a l rent will b e available, in t h e t e n a n t s ' interest, for t h e repair of the
h o u s e s a n d will n o t b e c o n s u m e d b y further increases in o w n e r s ' rates.
Increase of Rents
11. I n S c o t l a n d t h e R e n t arid M o r t g a g e I n t e r e s t Restrictions Acts apply,
b r o a d l y speaking, to all privately o w n e d houses w i t h a r a t e a b l e value n o t exceeding
£90 w h i c h a r e let unfurnished. H o u s e s are divided i n t o t w o classes—" old c o n ­
t r o l l e d " houses, i.e., those controlled u n d e r the A c t s in force i m m e d i a t e l y ' before
2 n d S e p t e m b e r , 1939, a n d " h e w c o n t r o l l e d " h o u s e s , i.e., those b r o u g h t u n d e r
c o n t r o l o n t h a t d a t e either for t h e first time, or as h a v i n g previously b e e n controlled
a n d later decontrolled. T h e r e is a " controlled " r e n t for e a c h h o u s e . I n " old
controlled " h o u s e s , it is the a m o u n t of the r e n t a t which the h o u s e w a s let i n 1914,
p l u s 40 per cent., plus a n allowance for increases o f o w n e r s ' rates between 1914-15
a n d 1919-20. F o r a " n e w c o n t r o l l e d " h o u s e , t h e controlled r e n t is the r e n t at
w h i c h the h o u s e w a s let on 1st S e p t e m b e r , 1939. W h e r e a h o u s e w a s let for the
first t i m e after 1st S e p t e m b e r , 1939, the " controlled " r e n t is the r e n t at w h i c h
it w a s first let, or a n y lesser r e n t fixed b y a R e n t T r i b u n a l u n d e r the L a n d l o r d a n d
T e n a n t ( R e n t Control) A c t ; 1949.
'
1
12. I n Scotland t h e r e a r e n o serious anomalies in t h e r e n t s of similar h o u s e s
arising f r o m the fact t h a t s o m e were decontrolled b e t w e e n the w a r s a n d others n o t .
B r o a d l y speaking, t h e r e is n o real disparity b e t w e e n t h e level of r e n t s for " old
controlled " h o u s e s arid t h a t for " n e w c o n t r o l l e d " h o u s e s . A n y increase of r e n t
can, therefore, b e m a d e at the s a m e r a t e for all controlled h o u s e s w i t h o u t p r o d u c i n g
unfairness as b e t w e e n t e n a n t s of c o m p a r a b l e h o u s e s .
13. T h e increase of r e n t a u t h o r i s e d b y the n e w A c t of 1920 was b a s e d o n
t h e a s s u m p t i o n t h a t a b o u t 28 per cent, of r e n t w o u l d b e r e q u i r e d for r e p a i r s . By
1939, h o w e v e r , the. cost of r e p a i r s h a d fallen; it seems t o H e r Majesty's G o v e r n ­
m e n t , on the iiiformatidn a b o u t r e p a i r costs w h i c h they h a v e o b t a i n e d , that it w o u l d
b e fair t o t a k e t h e r e p a i r s element in controlled r e n t s at .1939 a t about: 21 p e r cent,
or just over one-fifth of the gross r e n t .
;
' 1 4 . A S u b - C o m m i t t e e of the Scottish Building Costs C o m m i t t e e , after c a r r y ­
ing o u t a s a m p l e investigation, h a v e advised t h a t t h e cost of h o u s e r e p a i r s i n
Scotland rose b y 173 p e r cent, b e t w e e n 1939 a n d t h e e n d of 1952, a n d they expressed
t h e view t h a t , since houses r e q u i r e - m o r e r e p a i r s as t h e y g r o w older, the actual
increase in t h e r e p a i r bills for t h e t y p e . of; h o u s e s u n d e r c o n s i d e r a t i o n m i g h t well
b e a b o u t 200 p e r cent. T h a t is t o say, it now costs a b o u t t h r e e times as m u c h to
c a r r y o u t necessary repairs o n these h o u s e s as it cost in 1939- If, therefore, in
1939 o w n e r s n e e d e d one-fifth of t h e existing gross r e n t t o k e e p their houses in g o o d
r e p a i r , t h e y now need three-fifths—an increase of two-fifths, or a b o u t 40 p e r cent.
H e r Majesty's G o v e r n m e n t p r o p o s e , therefore, t h a t t h e owners of controlled houses
in S c o t l a n d w h i c h are, or are p u t into, g o o d a n d t e n a n t a b l e r e p a i r should ,be
a u t h o r i s e d to increase the gross r e n t b y 40 p e r cent, to m e e t the rise in r e p a i r costs
since 1939. If these proposals a r e accepted b y P a r l i a m e n t , they w o u l d m e a n t h a t
a r e n t of a controlled house at p r e s e n t let at £15 a year could b e increased t o
£ 2 1 — a n increase of £6 a year, or a b o u t 2s. 4d. a week. H e r Majesty's G o v e r n m e n t
are satisfied t h a t a fiat-rate p e r c e n t a g e increase of this order represents t h e m o s t '
e q u i t a b l e w a y of enabling Scottish o w n e r s of controlled houses t o m a i n t a i n their
h o u s e s in g o o d a n d t e n a n t a b l e repair.
15. A s already indicated, t h e increase in r e n t will be allowed only if t h e house
is i n g o o d a n d t e n a n t a b l e repair. If it is n o t , the owner must, c a r r y o u t t h e neces­
s a r y r e p a i r s before claiming t h e increase. T h e owner will b e r e q u i r e d to declare
t h a t t h e h o u s e is in g o o d a n d t e n a n t a b l e r e p a i r w h e n he serves t h e formal notice
of r e n t increase on t h e tenant. If t h e t e n a n t disputes t h e o w n e r ' s d e c l a r a t i o n in
this respect, h e will h a v e the r i g h t to apply to the local a u t h o r i t y for a certificate
of disrepair. Such a certificate w o u l d e n a b l e h i m to w i t h h o l d the p e r m i t t e d increase
in rent, in a d d i t i o n t o any sums which h e m a y already b e entitled t o w i t h h o l d u n d e r
the I n c r e a s e of R e n t a n d M o r t g a g e Interest (Restrictions) A c t , 1920, until t h e house
is p u t i n t o g o o d a n d t e n a n t a b l e repair.
:
16. T h e 40 p e r cent, increase in r e n t will, of course, b e p a y a b l e only w h e r e
t h e o w n e r of a h o u s e is responsible for, a n d actually carries out, t h e w o r k s necessary
to m a i n t a i n t h e h o u s e in g o o d a n d t e n a n t a b l e repair. W h e r e t h e o w n e r does
n o t c a r r y o u t all the repairs himself, a n d s o m e are d o n e b y t h e t e n a n t , the increase
will b e p r o p o r t i o n a t e l y less, a n d failing a g r e e m e n t b e t w e e n the o w n e r a n d tenant,
will fall t o b e settled b y the sheriff.
17. T h e p r o p o s e d increase of r e n t will n o t e x t e n d t o t h e small n u m b e r of
c o n t r o l l e d nouses let b y owners for t h e first time since 1939. T h e rents of these
h o u s e s , w h e t h e r fixed by R e n t T r i b u n a l s or otherwise, m a y already reflect s o m e
p a r t of t h e increased cost of r e p a i r s since 1939. I t is p r o p o s e d , therefore; t o
a u t h o r i s e t h e R e n t T r i b u n a l s t o fix t h e a p p r o p r i a t e increases in these cases.
Changes^ in the Rating System
18. I n Scotland the liability for r a t e s in respect of a controlled h o u s e differs
in t w o i m p o r t a n t ways from t h a t in respect of a controlled h o u s e in E n g l a n d a n d
W a l e s . First, r a t e s in Scotland are p a y a b l e o n t h e gross value, which is the full
a m o u n t of the rent. Secondly, a p r o p o r t i o n of the rates is p a y a b l e b y the owner.
O w n e r s of controlled houses w e r e allowed in 1920 t o a d d to the rent the difference
b e t w e e n t h e o w n e r s ' rates p a y a b l e in 1914-15 a n d 1 9 1 9 - 2 0 ; b u t they immediately
b e c a m e liable t o p a y o w n e r s ' r a t e s o n t h a t increase a n d - a l s o o n the rent increase
of 40 p e r cent, p e r m i t t e d in 1920. T h e y h a v e n o t b e e n allowed t o increase t h e
r e n t in respect either of that liability o r of s u b s e q u e n t increases in; the level of rates.
If n o special provision is m a d e , any n e w increase of r e n t n o w p e r m i t t e d will again
b e c o m e r a t e a b l e ; the owner, as well as t h e tenant, w o u l d h a v e to p a y r a t e s o n it.
C o n s e q u e n t l y , either its a m o u n t w o u l d h a v e to b e substantially greater t h a n would
o t h e r w i s e b e necessary or its p u r p o s e of enabling the o w n e r to m e e t t h e higher c o s t
of r e p a i r s w o u l d b e defeated.
19. I n t h e light of these a n d o t h e r consequences of the Scottish r a t i n g a n d
v a l u a t i o n s y s t e m it a p p e a r e d t o H e r Majesty's G o v e r n m e n t t h a t an i m p a r t i a l
investigation of that system w a s called f o r ; a n d accordingly t h e Secretary of S t a t e
h a s a p p o i n t e d a d e p a r t m e n t a l C o m m i t t e e u n d e r t h e c h a i r m a n s h i p - of L o r d Sorn
" t o review the p r e s e n t system of v a l u a t i o n a n d r a t i n g - o t h e r t h a n t h e d e r a t i n g of
agricultural, industrial a n d freight t r a n s p o r t lands a n d heritages—in S c o t l a n d ;
t o consider w h e t h e r any, a n d if so, w h a t , changes should b e m a d e in the s y s t e m ;
a n d w h a t o t h e r action w o u l d i n c o n s e q u e n c e of any such changes b e r e q u i r e d :
and to report."
20. I n t h e m e a n t i m e steps m u s t be t a k e n t o avoid t h e increase of r e n t t o m e e t
t h e cost of r e p a i r s having t o b e inflated t o c o v e r a consequential liability for rates
a n d t o e n s u r e t h a t the sums available to m e e t the cost of r e p a i r s are n o t diminished
b y t h e o w n e r ' s rating liability. It is p r o p o s e d , therefore, as a n i n t e r i m m e a s u r e ,
(a) t h a t any increases allowed in the r e n t s of controlled h o u s e s in Scotland should
n o t b e t a k e n i n t o a c c o u n t in d e t e r m i n i n g t h e r a t e a b l e value of the h o u s e s — s o t h a t
b o t h o w n e r a n d t e n a n t w o u l d c o n t i n u e t o p a y r a t e s o n the p r e s e n t r e n t o n l y — a n d
(b) t h a t o w n e r s ' r a t e s o n c o n t r o l l e d h o u s e s s h o u l d be stabilised at t h e p o u n d a g e a t
w h i c h they s t a n d in t h e c u r r e n t financial year.
- 2 1 . H e r Majesty's G o v e r n m e n t believe t h a t these a r r a n g e m e n t s will e n a b l e
t h e owners of t h e great majority of the let h o u s e s in S c o t l a n d to m a i n t a i n their
h o u s e s in good a n d t e n a n t a b l e repair a n d so e n s u r e that this i m p o r t a n t p a r t of t h e
c o u n t r y ' s stock of houses m a y b e preserved.
:
Improvements and Conversions
22. H e r Majesty's G o v e r n m e n t h a v e also h a d r e g a r d to t h e n e e d for
e n c o u r a g i n g t h e o w n e r s of houses w h i c h a r e structurally s o u n d a n d c a p a b l e of
i m p r o v e m e n t conversions t o c a r r y o u t the necessary w o r k s . I m p r o v e m e n t s m a y
b e desirable n o t only t o houses otherwise r e q u i r i n g r e p a i r b u t also to h o u s e s i n
g o o d r e p a i r w h i c h lack m o d e r n services a n d amenities. Conversions m a y involve
t h e sub-division of large h o u s e s t o p r o v i d e m o r e dwellings or t h e c o m b i n a t i o n of
small houses i n t o houses of a m o r e useful size,
23. E x c h e q u e r assistance is a l r e a d y available b o t h to p r i v a t e owners a n d t o
local authorities for t h e i m p r o v e m e n t a n d conversion of existing houses. O w n e r s
w h o wish t o i m p r o v e or c o n v e r t their houses c a n o b t a i n a g r a n t e q u a l t o half
the cost of t h e w o r k as a p p r o v e d b y t h e local a u t h o r i t y subject, n o r m a l l y , t o the
t o t a l cost being m o r e t h a n £150 b u t n o t m o r e t h a n £800. Assistance t o local
authorities takes t h e f o r m of a n a n n u a l g r a n t e q u a l , n o r m a l l y , t o t h r e e - q u a r t e r s of
the a m o u n t b y w h i c h t h e r e n t for t h e i m p r o v e d dwelling falls short of t h e local
a u t h o r i t y ' s a n n u a l charges.
24. The. use m a d e of these facilities in Scotland h a s been disappointing.
G r a n t s p a i d o r p r o m i s e d cover o n l y s o m e 2,400 houses. H e r Majesty's G o v e r n m e n t
p r o p o s e t o discuss w i t h the Associations of L o c a l A u t h o r i t i e s a n d other interests
c o n c e r n e d w h a t c a n b e d o n e t o secure greater progress.
25. I n addition, t h e G o v e r n m e n t h a v e decided t o modify t h e s c h e m e in
certain respects. [They believe t h a t t h e condition that the t o t a l cost s h o u l d n o t
n o r m a l l y exceed £800 h a s h a d a restrictive effect a n d they p r o p o s e t h a t this m a x i ­
m u m should b e r e m o v e d w i t h o u t , h o w e v e r , raising t h e m a x i m u m g r a n t a b o v e
£400.] A t p r e s e n t the r e n t of an i m p r o v e d h o u s e c a n n o t be r a i s e d b y m o r e t h a n
6 p e r cent, of t h a t p a r t of t h e cost w h i c h is b o r n e b y the o w n e r . I n present c i r c u m ­
stances, this a d d i t i o n d o e s h o t p r o v i d e a sufficient i n d u c e m e n t t o owners a n d it is
p r o p o s e d t o raise it from 6 p e r cent, t o 8 per cent., to c o r r e s p o n d with the a m o u n t
in t h e R e n t R e s t r i c t i o n A c t s b y w h i c h r e n t m a y b e increased w h e n i m p r o v e m e n t s
are carried out. U n d e r the p r e s e n t law, w h e r e t h e i m p r o v e d h o u s e h a s n o t been
let i n the p r e v i o u s five years, the local a u t h o r i t y fix a n a p p r o p r i a t e .rent; the
G o v e r n m e n t i n t e n d t h a t it s h o u l d b e m a d e clear by legislation that, in so doing,
local authorities s h o u l d h a v e r e g a r d t o the age a n d c o n d i t i o n of the h o u s e after
t h e w o r k h a s b e e n carried o u t a n d to the cost involved. Lastly, the G o v e r n m e n t
i n t e n d t o advise local authorities t h a t , while it s h o u l d r e m a i n ^ " c o n d i t i o n of a p p r o v a l
t h a t t h e h o u s e m u s t r e a c h a certain s t a n d a r d , they should use r e a s o n a b l e discretion
a n d n o t insist on a b s o l u t e c o m p l i a n c e w i t h every r e q u i r e m e n t w h e r e this w o u l d
m a k e i m p r o v e m e n t quite i m p r a c t i c a b l e .
'
,
/ : 26. H e r M a j e s t y ^ G o v e r n m e n t h o p e t h a t w i t h these changes m a n y m o r e
o w n e r s of houses which .are r e n t e d will be e n c o u r a g e d to u n d e r t a k e w o r k s of
i m p r o v e m e n t a n d conversion t h a t will give the t e n a n t s the benefit of m o d e r n
facilities a n d amenities.
.
, v. . \
v
Measures for Dealing with Unfit Houses
27. W h i l e t h e p r o p o s a l s outlined' in the foregoing p a r a g r a p h s of this p a p e r
s h o u l d e n a b l e t h e great m a j o r i t y of Scottish o w n e r s t o m a i n t a i n their h o u s e s in
g o o d a n d t e n a n t a b l e repair, s o m e ; o w n e r s m a y b e u n a b l e or unwilling t o c a r r y
o u t t h e necessary w o r k s . If t h e disrepair is serious a n d the houses a r e likely to
d e t e r i o r a t e rapidly unless remedial; a c t i o n is t a k e n , it is i n the p u b l i c interest t h a t
t h e necessary r e p a i r s should: b e carried o u t if this c a n b e d o n e at r e a s o n a b l e e x p e n s e
and t h e houses can b e m a i n t a i n e d as satisfactory dwellings for s o m e time t o c o m e .
28. L o c a l a u t h o r i t i e s , in the case, of houses falling into this category, already
h a v e p o w e r s u n d e r t h e H o u s i n g (Scotland) Acts for securing the execution of
r e p a i r s necessary to m a k e such houses fit in all respects for h u m a n h a b i t a t i o n . T h e
existing p r o c e d u r e is t h a t w h e r e a local a u t h o r i t y are satisfied that a h o u s e is in
a n y respect unfit for h u m a n h a b i t a t i o n b u t is c a p a b l e of being m a d e fit at r e a s o n a b l e
e x p e n s e , they serve notice o n the o w n e r r e q u i r i n g h i m to carry o u t t h e necessary
w o r k s . T h e o w n e r m a y appeal against t h e notice to the Sheriff; if h e does n o t
a p p e a l , o r if his a p p e a l is dismissed, a n d h e fails to comply with t h e notice, the local
a u t h o r i t y m a y c a r r y o u t t h e w o r k s themselves a n d charge the cost t o t h e owner.
T h e s e p o w e r s will b e c o n t i n u e d , a n d local a u t h o r i t i e s will b e e n c o u r a g e d t o exercise
t h e m in all a p p r o p r i a t e cases to p r e v e n t a n y further unnecessary w a s t a g e of the
c o u n t r y ' s stock of houses.
29. T h e H o u s i n g (Scotland) A c t s also p r o v i d e that if a h o w n e r c a n satisfy
t h e local a u t h o r i t y t h a t t h e e x p e n s e of c a r r y i n g o u t w o r k o n a h o u s e t o m a k e it
fit for h u m a n h a b i t a t i o n is u n r e a s o n a b l e , h a v i n g r e g a r d to t h e owner's
financial
circumstances, h e m a y ask for the m a k i n g of a demolition order o r a closing o r d e r
in respect of t h e h o u s e , a n d the local a u t h o r i t y c a n n o t u n r e a s o n a b l y refuse this
request. Because of this provision, a n d t h e general shortage of h o u s i n g a c c o m ­
m o d a t i o n i n their areas, m a n y Scottish local authorities h a v e refrained from taking
a c t i o n w h i c h m i g h t result in h o u s e s being p u t o u t of commission altogether. H e r
Majesty's G o v e r n m e n t consider t h a t w h e r e a n o w n e r w h o is called u p o n t o m a k e
his h o u s e fit for h u m a n h a b i t a t i o n asks for t h e m a k i n g of a demolition o r d e r or
a closing o r d e r , b u t t h e local a u t h o r i t y a r e nevertheless satisfied t h a t they c o u l d
m a k e t h e h o u s e fit for h u m a n h a b i t a t i o n , at a cost which seems r e a s o n a b l e to t h e m ,
b y acquiring it a n d carrying o u t repairs themselves, they should b e given p o w e r
t o t a k e over t h e h o u s e a n d d o such w o r k s as they t h i n k necessary for this p u r p o s e .
I n such cases, t h e h o u s e s w o u l d b e acquired as unfit houses at site value in
a c c o r d a n c e with t h e existing provisions of t h e H o u s i n g (Scotland) Acts.
30. T h e r e are, however, m a n y houses in Scotland in such a state of dilapida­
t i o n a n d disrepair t h a t they c o u l d n o t in a n y circumstances b e m a d e completely
fit for h a b i t a t i o n a n d k e p t in r e p a i r at r e a s o n a b l e cost. T h e s e houses are ripe for
i m m e d i a t e d e m o l i t i o n a n d , b u t for t h e i n t e r r u p t i o n of the s l u m clearance p r o ­
g r a m m e , they w o u l d n o d o u b t h a v e b e e n demolished before now. T h e r a t e at
w h i c h they can b e demolished will d e p e n d o n t h e housing situation in t h e a r e a s
in w h i c h they a r e s i t u a t e d : in m a n y areas it m a y b e necessary for houses in this
c a t e g o r y to r e m a i n in o c c u p a t i o n for s o m e time. W h e r e this is so, it a p p e a r s t o
H e r Majesty's G o v e r n m e n t desirable t h a t steps s h o u l d b e t a k e n t o m a k e t h e houses
m o r e h a b i t a b l e for the t e n a n t s . T h e G o v e r n m e n t p r o p o s e , therefore, t h a t w h e r e
a local a u t h o r i t y are satisfied t h a t houses a r e unfit for h u m a n h a b i t a t i o n , c a n n o t
b e m a d e fit at r e a s o n a b l e expense, a n d c a n n o t yet be demolished because of the
h o u s i n g s h o r t a g e in their area, they s h o u l d be enabled t o acquire t h e houses at
site v a l u e a n d carry out such w o r k as is necessary t o r e n d e r t h e m r e a s o n a b l y habits
able for the t e n a n t for t h e r e m a i n d e r of t h e p e r i o d in which they will be occupied.
T h e s t a n d a r d t o which these houses c a n b e r e p a i r e d c a n n o t possibly be high, b u t
t h e a i m will be to m a k e t h e m at least wind-and-water-tight a n d to m a i n t a i n essential
services.
3 1 . H e r Majesty's G o v e r n m e n t d o n o t i n t e n d that this course should b e a n
alternative to d e m o l i t i o n : it m u s t only b e followed w h e r e d e m o l i t i o n is n o t for
t h e t i m e being practicable. T h e r e are s o m e areas n o w where it is u n n e c e s s a r y t o
r e t a i n such h o u s e s at all, a n d as t h e p r o g r a m m e of n e w houses p r o c e e d s , the n u m b e r
of these areas will g r o w steadily. T h e G o v e r n m e n t will e n c o u r a g e local authorities
t o r e s u m e s l u m c l e a r a n c e as s o o n as, a n d to' t h e extent that, the local circumstances
p e r m i t . T h e y m a y p r o c e e d b y declaring clearance areas u n d e r t h e H o u s i n g (Scot­
land) A c t s a n d secure the demolition of buildings b y C o m p u l s o r y P u r c h a s e O r d e r s
or C l e a r a n c e O r d e r s . T h e y m a y exercise t h e p o w e r s u n d e r t h e P l a n n i n g A c t s to
deal w i t h r e d e v e l o p m e n t areas.
Exchequer Assistance
32. [The acquisition of houses u n d e r t h e n e w provisions p r o p o s e d in p a r a ­
g r a p h s 29 a n d 30 a n d t h e carrying o u t of. w o r k o n them, will involve local authorities
in substantial e x p e n d i t u r e t o w a r d s w h i c h t h e E x c h e q u e r will c o n t r i b u t e . T h e
G o v e r n m e n t p r o p o s e t h a t p a r t of the E x c h e q u e r assistance should b e t o w a r d s the
44807
c
a n n u a l costs of a m o r t i s a t i o n of loans for t h e acquisition of t h e h o u s e s d u r i n g the
p e r i o d t h a t they c o n t i n u e t o b e occupied. T h e r e m a i n i n g p a r t of the assistance
will t a k e t h e f o r m of a fixed a n n u a l s u m for [
] y e a r s for e a c h h o u s e t o w a r d s the
cost of w o r k s of i m p r o v e m e n t a n d s u b s e q u e n t a n n u a l m a i n t e n a n c e a n d m a n a g e ­
m e n t . W i t h these c o n t r i b u t i o n s to a u g m e n t rents, which will b e fixed b y t h e local
authorities i n t h e light of the s t a n d a r d of a c c o m m o d a t i o n p r o v i d e d , it should be
possible t o c a r r y o u t this p r o g r a m m e w i t h o u t a n u n d u e b u r d e n o n t h e rates.]
33. I t is p r o p o s e d t h a t local authorities s h o u l d b e r e q u i r e d to s u b m i t t o the
Secretary of State for a p p r o v a l periodical p r o g r a m m e s for dealing with the a c c u m u ­
lated d i s r e p a i r of h o u s e p r o p e r t y i n their district. T h e first p r o g r a m m e , w h i c h
w o u l d indicate the action to be t a k e n over t h e following five years, would b e s u b ­
m i t t e d to t h e Secretary of State within 12 m o n t h s of t h e passing of t h e n e w
legislation, b u t this p e r i o d c o u l d be e x t e n d e d in e x c e p t i o n a l c i r c u m s t a n c e s . I n
this p r o g r a m m e , t h e local authorities would b e r e q u i r e d to i n d i c a t e the n u m b e r of
houses w h i c h they p r o p o s e d to demolish as hopelessly unfit a n d t h e areas in which
t h e h o u s e s a r e situated a n d the local authorities' p r o p o s a l s for r e h o u s i n g the families
displaced. T h e local authorities w o u l d also i n d i c a t e t h e a p p r o x i m a t e n u m b e r of
unfit h o u s e s e a r m a r k e d for d e m o l i t i o n , b u t w h i c h they p r o p o s e d t o m a k e m o r e
h a b i t a b l e b y t e m p o r a r y p a t c h i n g until demolition c o u l d be carried out. A t t h e t i m e
of s u b m i s s i o n of t h e first p r o g r a m m e the local authorities m i g h t n o t b e able t o fore­
cast h o w m a n y h o u s e s they p r o p o s e d to acquire in the five-year p e r i o d in o r d e r to
repair t h e m a n d m a k e t h e m fit for h u m a n h a b i t a t i o n ; b u t in s u b s e q u e n t p r o g r a m m e s
they w o u l d indicate t h e a p p r o x i m a t e n u m b e r of h o u s e s in this class. T h e Secretary
of State w o u l d a p p r o v e the p r o g r a m m e w i t h o r w i t h o u t a m e n d m e n t , a n d as
a p p r o v e d it w o u l d b e t h e basis o n w h i c h t h e local authorities w o u l d o p e r a t e over
t h e n e x t five years.
Development of Housing Programme
34. I t will n o t be possible t o o v e r t a k e for s o m e time t h e a c c u m u l a t e d disrepair
a n d d i l a p i d a t i o n . A s t h e measures c o n t e m p l a t e d in this p a p e r will t a k e t i m e to
develop, t h e w o r k of r e p a i r i n g a n d i m p r o v i n g existing h o u s e s a n d s l u m clearance
w o r k will h a v e to b e fitted into the present h o u s i n g p r o g r a m m e . I n framing their
p r o p o s a l s , t h e r e f o r e , local authorities will h a v e t o consider i n t h e light of local
c i r c u m s t a n c e s h o w m u c h of the l a b o u r a n d m a t e r i a l s available to t h e m s h o u l d
p r o p e r l y b e d e v o t e d t o n e w building a n d h o w m u c h t o this n e w w o r k .
35. P r o g r e s s will n a t u r a l l y d e p e n d on local conditions, b u t in any event, local
authorities (unless i n v e r y exceptional areas) s h o u l d be able to d e a l with the w o r s t
houses w i t h i n the p e r i o d of the first p r o g r a m m e a n d to m a k e s u b s t a n t i a l progress
w i t h the r e m e d y i n g of defects a n d t h e arresting of d e t e r i o r a t i o n . I n s o m e areas
it should also b e possible t o m a k e an early start w i t h slum c l e a r a n c e a n d t h e p r o ­
vision of r e h o u s i n g a c c o m m o d a t i o n ; in others, h o w e v e r , w h e r e the s h o r t a g e of
houses is still acute, progress with slum clearance m u s t inevitably be slower.
36. A s r e g a r d s n e w construction, it is i m p o r t a n t that, t o the extent necessary
in their respective districts, local authorities should c o n t i n u e to p r o v i d e additional
h o u s e s , so as to r e d u c e the h o u s i n g s h o r t a g e a n d facilitate t h e r e h o u s i n g of families
displaced as a r e s u l t of slum clearance. H e r Majesty's G o v e r n m e n t are a n x i o u s ,
t o o , t h a t as m a n y a d d i t i o n a l houses as possible s h o u l d be built b y p r i v a t e enterprise.
T h e a d v a n t a g e s of relieving the E x c h e q u e r a n d t h e rates of s o m e of the b u r d e n
resulting f r o m t h e h o u s i n g p r o g r a m m e are o b v i o u s . T h e y h a v e been c o n c e r n e d ,
therefore, to d o e v e r y t h i n g possible to m a k e it easier for p r i v a t e individuals in
Scotland t o b u i l d h o u s e s for themselves. I n p a r t i c u l a r , they h a v e progressively
r e l a x e d the restriction in private building (culminating i n t h e r e c e n t decision t o m a k e
t h e issue of licences automatic) a n d they h a v e abolished d e v e l o p m e n t charges;
T h e y will t a k e every further o p p o r t u n i t y that offers t o p r o m o t e t h e p r i v a t e building
of houses, n o t only for o w n e r - o c c u p a t i o n , b u t also for letting, a n d they a r e a n x i o u s
t h a t as m a n y p e o p l e as possible s h o u l d t a k e a d v a n t a g e of these o p p o r t u n i t i e s .
R e n t s of Local Authority H o u s e s
[ P a r a g r a p h s still to be drafted.]
H
Houses belonging to Housing Associations and Development Corporations
under N e w T o w n s A c t
38. T h e h o u s i n g o p e r a t i o n s of local authorities are substantially s u p p l e m e n t e d
b y those of the Scottish Special H o u s i n g Association, other housing associations,
a n d the N e w T o w n D e v e l o p m e n t C o r p o r a t i o n s i n Scotland. F o r housing p u r p o s e s ,
these bodies are in m u c h t h e same p o s i t i o n as l o c a l a u t h o r i t i e s . T h e h o u s e s w h i c h
they build, like local a u t h o r i t y h o u s e s , a r e subsidised f r o m public f u n d s , b u t
unlike local a u t h o r i t y houses, they are subject to the provisions of the R e n t Restric­
tions Acts. It seems to H e r Majesty's G o v e r n m e n t ,that this difference of status
should b e r e m o v e d , having r e g a r d to the degree of security of t e n u r e which the
families occupying these houses enjoy as the t e n a n t s of responsible public bodies,
a n d t o the desirability of enabling t h e s e bodies, like local authorities, t o review the
rents of their houses from t i m e to time a n d t o m a k e such adjustments as m a y be
justified by c h a n g i n g circumstances. H e r Majesty's G o v e r n m e n t , therefore, p r o p o s e
t h a t houses belonging to the Scottish Special H o u s i n g Association, to o t h e r housing
associations, a n d t o N e w T o w n D e v e l o p m e n t C o r p o r a t i o n s in Scotland should cease
to be controlled.
;
Legislation
;
^
39. So far as the p r o p o s a l s in this p a p e r involve legislation, the necessary
powers will b e sought in a H o u s i n g R e n t a n d R e p a i r s (Scotland) Bill which will
shortly b e s u b m i t t e d to P a r l i a m e n t .
APPENDIX
STATEMENT S H O W I N G THE E F F E C T ON THE INCOME FROM CONTROLLED R E N T S O F THE
INCREASES IN R E P A I R C O S T S A N D O W N E R ' S
Gross rent
(controlled
since 1920)
£
Glasgow—
1920
1939
1952
s.
d.
RATES
Repairs
(Note 1)
Owners
rates
£
£
s.
d.
Amount
remaining
available
(Note 2)
s.
d.
£
s.
d.
15 0
15 0
15 0
0
0
0
4
3
9
4
3
9
0
0
0
3 3
4 17
5 16
9
6
3
Edinburgh—
1920
...
1939
...
1952
...
15
15
15
0
0
0
0
0
0
4
3
9
4
3
9
0
0
0
1 18
2 3
3 2
9
9
6
8 17
9 13
2 8
3
3
6
Dundee—
1920
1939
1952
...
...
...
15
15
15
0
0
0
0
0
0
4
3
9
4
3
9
0
0
0
2 8
3 3
4 16
9
9
3
8 7
8 13
minus 0 14
3
3
9
Lanarkshire—
1920
...
1939
...
1952
...
15
15
15
0
0
0
0
0
0
4
3
9
4
3
9
0
0
0
4 1 3
5 18 9
6 12 6
...
...
...
7 12 3
6 19 6
minus 0 5 .3
6 14 9
5 18 3
minus 1 1 6
(1) The amounts for repairs shown are 28 per cent, of the 1920 rent, 21 per cent, of the 1939
rent and for 1952, three times the repairs element in the 1939 rents, that is, allowance is made for
the same amount of repair work as in 1939 (at 1952 prices) and for additional repairs necessary in
1952 because of the ageing of the house.
(2) This column shows the net sum available on the assumption that the owner now carries
repairs on the scale contemplated by the 1920 increase. From this sum the owner's other expenses—
management, insurance, ground burdens, &c.—have normally to be met.