(c) crown copyright
Catalogue Reference:CAB/129/63
Image Reference:0009
Printed
for the Cabinet.
September
1953
C A B I N E T Or- F I G L
RECORD COPY
SECRET
*
CopyNo.69
D
C . (53) 259
25th
September,
1953
CABINET
WHITE
PAPER
ON
HOUSING
POLICY
M E M O R A N D U M BY THE M I N I S T E R OF H O U S I N G AND LOCAL
GOVERNMENT
I w a s impressed b y the a r g u m e n t used in Cabinet (C.C. (53) 52nd Conclusions,
M i n u t e 1) t h a t the repairs increase s h o u l d follow the logic of the a r g u m e n t , a n d
b e allowed to rise to a m a x i m u m of twice instead of one-and-a-half
times t h e
s t a t u t o r y deduction (S.D.).
I t is certainly t r u e t h a t economists in general, a n d The Economist
journal
in particular, will t a k e this line.
T h e r e a s o n w h y I was unwilling to follow the logical c o u r s e w a s m y fear t h a t
t h e increases might seem very heavy—in percentage, if n o t in m o n e y t e r m s — o n
the low r e n t s .
M a n y of these are 4s., 5s. and 6s. U n d e r twice the S.D. they might well all
suffer an increase of 4s. Id. (double or nearly double).
But, of course, this difficulty is inherent in m y scheme. I t is m e a n t to b e a r
m o r e h a r d l y o n the small rents, a n d less severely o n the larger rents, where the
houses are similar in value and
amenities.
I h a v e p r e p a r e d tables showing the effect of the t w o m e t h o d s — \ % S.D. a n d
2 S.D.—on houses in different categories. I h a v e also p r e p a r e d alternative p a r a ­
g r a p h s (Annex) for the W h i t e P a p e r if the C a b i n e t prefers t o accept the m o r e
logical b u t m o r e severe scheme.
It will be seen, then, t h a t for the two categories of houses—£15 a n d £25 gross
value, u n d e r \ \ S.D. the m a x i m u m repair increases are 3s. 6d. a n d 4s. respectively,
as against 4s. Id. a n d 5s. 5d. if we go t o 2 S.D.
T h e maximum
rent (that is, twice t h e gross value) is n a t u r a l l y the s a m e in
each case-—viz. 11 s. 6d. a n d 19s. 3d. respectively..
O n the w h o l e — s i n c e it is said t h a t o n e might as well h a n g for a sheep as a
l a m b - 1 should be inclined to go for 2 S.D. This will certainly assist o u r real
object—to get the repairs done. It will also help the C h a n c e l l o r of t h e E x c h e q u e r ,
since local authorities will b e e n c o u r a g e d t o increase their r e n t s m o r e boldly.
B u t I m u s t then hold, even m o r e tenaciously, to the t w o c o n d i t i o n s w h i c h m u s t
b e satisfied before a n y r e n t c a n r i s e :
(a) t h e state of the h o u s e ;
(b) t h e actual e x p e n d i t u r e of the m o n e y on r e p a i r s .
I a m p r e p a r e d , however, to give the l a n d l o r d a n o p t i o n on (b). E i t h e r h e
can have spent the m o n e y over the last (say) t w o years, or be spending it within
a certain time in the future. This, h o w e v e r , will be left to t h e Bill, a n d p u t only
in general terms in t h e W h i t e P a p e r .
F r o m the political p o i n t of view, I feel t h a t the association of actual r e p a i r s
being d o n e , in the present, the future, or the not too r e m o t e past, is m o r e i m p o r t a n t
t h a n the precise figure of the maximum
permitted
increase, especially w h e n w e
r e m e m b e r in h o w m a n y cases s o m e t h i n g less than the m a x i m u m will b e d u e
(because the r e n t is already r a t h e r higher).
But, w i t h so m u c h at stake, I should like the C a b i n e t to decide, with a full
k n o w l e d g e of the facts presented as clearly as I am able.
H.
Ministry
44892
of Housing and Local
23rd September,
Government,
1953.
S.W.
1,
M.
km ANNEX
ALTERNATIVE
Paragraph
23:
PARAGRAPHS
TC- D R A F T
WHITE
PAPER
T r a n s f e r t o follow t h e p r e s e n t p a r a g r a p h 34.
Paragraph 33: C o n s e q u e n t i a l on a b o v e , omit the sentence in b r a c k e t s in the
14th a n d 15th lines.
;
Paragraph 35 : T o r e a d : " It follows, since the cost of repairs is n o w just over
t h r e e times w h a t it was in 1939, t h a t a repairs increase of twice the s t a t u t o r y
d e d u c t i o n w o u l d e n a b l e l a n d l o r d s to r e p a i r a n d m a i n t a i n houses to the s t a n d a r d
t h e y a d o p t e d in 1939. Accordingly, H e r Majesty's G o v e r n m e n t p r o p o s e t h a t the
repairs increase s h o u l d b e an a m o u n t e q u a l to twice the s t a t u t o r y d e d u c t i o n . "
Paragraph 36 : T o r e a d : " But, since (as already p o i n t e d out) the r e n t s of s o m e
h o u s e s are already high, it is p r o p o s e d , in o r d e r t o p r o v i d e s o m e b r a k e to this
repairs increase, t h a t n o r e n t should, b y r e a s o n of the p r o p o s a l in t h e preceding
p a r a g r a p h , rise a b o v e twice t h e existing gross value of t h e h o u s e . "
Paragraph 37: T o r e a d : " T h e effect of these proposals, t a k e n together, on
houses in t h e different gross value g r o u p s c a n b e a p p r e c i a t e d b y looking at the
figures in A p p e n d i x I I .
" O n e o r two e x a m p l e s will illustrate it. T a k e a h o u s e with an existing gross
value for r a t i n g of £15. T h e s t a t u t o r y d e d u c t i o n is £6. T h e r e p a i r s increase
allowed u n d e r these p r o p o s a l s w o u l d b e £12 per a n n u m or 4s. Id. a w e e k . B u t t h e
r e n t m a y not, by r e a s o n of these p r o p o s a l s , increase b e y o n d twice the gross v a l u e ;
t h a t is, b e y o n d £30. p e r a n n u m or 11s. 6d. a week. If the p r e s e n t r e n t is less t h a n
6s. lid. a week it m a y increase b y t h e full 4s. Id. If it is m o r e t h a n 6s. lid. the
increase is less t h a n 4s. Id.
If it is a l r e a d y 11s. 6d. a week or m o r e t h e r e is n o
increase.
" O r t a k e a h o u s e w i t h a n existing gross value of £25. T h e s t a t u t o r y d e d u c t i o n
is £7. T h e repairs increase in this case w o u l d b e £14 p e r a n n u m , or 5s. 5d. a w e e k ;
a n d t h e highest figure to w h i c h the r e n t c o u l d b e increased w o u l d b e £50 per
a n n u m or 19s. 3d. a week. If the p r e s e n t r e n t is less t h a n 13s. lOd. a w e e k it m a y
increase by t h e full 5s. 5d. If it is m o r e t h a n 13s. lOd. a week t h e increase is less
t h a n 5s. 5d. If it is a l r e a d y 19s. 3d. a week or m o r e t h e r e is n o increase.
" T h e great m a j o r i t y — o v e r 5 million o u t of a total of a b o u t 6 m i l l i o n - o f
h o u s e s subject to r e n t restriction h a v e at p r e s e n t a gross value for r a t i n g of less
t h a n £30. O v e r 4 million of t h e m h a v e a gross v a l u e for r a t i n g of less t h a n
£20 10s. T h e first e x a m p l e therefore is t h e m o s t c h a r a c t e r i s t i c ; a n d t h e t w o
examples together c o v e r five-sixths of all t h e houses affected by the p r o p o s a l s . "
H O U S E S IN L O N D O N (METROPOLITAN POLICE DISTRIC
Increased by 2 S.D.
Date
Dat e Buil
Builtt
District
Distric t
No.
No . i n
sample
sampl e
Gros s
Gross
value
valu e
(G.V.)
(G.V. )
£
1
2
3
4
5
6
7
Maximum rents
if increase of
2 S.D. (with
stopper of
twice G.V.)
£ p.a.
8
25
14
2
37
3
1
6
1
13
15
5
6
18
7*
15-23
15-16
30-31
18-22
25-29
12
18-27
44
25-33
27-28
42-43
32-36
39-43
26
32-41
58
25-26
27-28
30-31
32-36
36
26
32-40
44
28-35
31-33
44-53
63
50-55
71
30-31
41-48
74
34
47-66
70-100
75
225
46-53
51-53
64-73
83
68-73
89
54-55
65-72
98
62
75-94
98-128
103
253
46-52
51-53
60
63
68-70
71
54-55
65-72
80
62
75-94
98-100
103
225
6/11-6/
7/8
6/2-2/
43-50
48
53
65-75
87
68
70
77-78
89
110-120
127-132
34-36
38
44
51-61
73
54
60
70
80
100
127-132
1/11-C
1/6
1/11
A-Built
before 1919
C. 1850
Edmonton
1890
Walthamstow B.
-1
1850
Battersea M.B.
s
1900
Chislehurst and
Sidcup U . D .
J
1
1865
Hammersmith M.B. ...
1900 ...
Lewisham M.B.
­(
1912
Wembley B. ...
I
1880-90
Islington M.B.
­c
1900
Battersea M.B.
-I
1910
Edmonton B.
K
20
2
6
1
14
1
2
6
1
1
13
9
1
1
Statutory
Statutor y
deductio
deductionn
(S.D.))
(S.D.
20
8
(transitional:
calculate in­
crease as though
S.D. were 7)
9*
26
30
10*
35
40
9
50
12*
70
14*
Presen
Presentt
rents
rent s
£p.a.
Rents
increased
by 2 S.D.
£ p.a.
Amount
increase
shilling
per wee
9
3/10-1/
4/7
5/5
4/2-2/8
5/5
5/4-4/1
6/11-5/
9/2
9/2
2/3
10/9
10/9
10/9-0
10/9
14
B-Built
after
1934
1937
1918
UxbridgeU.D.
StainesU.D.
1934-35
Edmonton B.
1934
1936
?
1937
1929
1934 ...
Walthamstow B.
Wembley B
Ealing B
Edmonton B.
Wembley B.
Croydon C.B.
-j^
10
16
1
3
1
8
68
74
6
4
4
17
19
22
7
7
7
24
30
35
40
50
80
7
8
9
10
10
16
29-36
34
39
51-61
73
­
54
54
59-60
69-71
90-100
95-100
2/4
4/3-3/
4/3-3/
3/10-0
12/3
* Statutory deductions in the L.C.C. area are different and in general higher the
*
^-
-
' —^
N (METROPOLITAN POLICE D I S T R I C T )
Increased by 2 S.D.
7
Maximum rents
if increase of
2 S.D. (with
stopper of
twice G.V.)
£ p.a.
8
25-33
27-28
42-43
32-36
39-43
26
32-41
58
25-26
27-28
30-31
32-36
36
26
32-40
44
46-53
51-53
64-73
83
68-73
89
54-55
65-72
98
62
75-94
98-128
103
253
46-52
51-53
60
63
68-70
71
54-55
65-72
80
62
75-94
98-100
103
225
Rents
increased
by 2 S.D.
£ p.a.
Increased by 1J S.D.
Amount of
increase in
shillings
per week
10
Maximum rents
if increase of
li S.D. (with
stopper of
twice G.V.)
£ p.a.
11
22-5-30-5
24-25
39-40
28-5-32-5
35-5-39-5
22-5
28-5-37-5
54-5
22-5-26
24-25
30-31
28-5-32-5
35-5-36
22-5
28-5-37-5
54-5
2/11-1/2
3/6
41-5-48-5
46-48
59-68
78
63-5-68-5
87-5
48-49
59-66
92
55
68-87
91-121
96
252
41-5-48-5
46-48
59-60
63
63-5-68-5
71
48-49
59-66
80
55
68-87
91-100
96
225
5/2
5/9
5/9-2/8
39-5-46-5
44-5
49-5
61-5-71-5
83-5
64-5
66
72-5-73-5
84-86
105-115
119-134
34-36
38
44
51-61
73
54
60
70
80
100
119-134
Rents
increased
by H S.D.
£ p.a.
9
3/10-1/1
4/7
5/5
4/2-2/8
5/5
5/4-4/11
—
6/11-6/6
7/8
6/2-2/8
—
6/11-5/9
.—
9/2
9/2
2/3
10/9
10/9
10/9-0
10/9
For comparison
Amount of
increase in
shillings
per week
The present
rents (i.e., col. 6)
are shown
below in
shillings per week
12
13
5/9-8/10
5/9-6/2
11/6-11/11
6/11-8/6
9/7-11/2
4/7
6/11-10/5
16/11
4/0
4/0-2/8
4/0
4/0
—
.—
5/2
—
6/11
6/11
2/4
8/1
8/1
8/1-0
8/1
10/9-13/6
11/11-12/8
16/11-20/5
24/3
19/3-21/2
27/4
11/6-11/11
15/9-18/6
28/5
13/1
18/1-25/5
26/11-38/6
28/10
88/1
"
43-50
48
53
65-75
87
68
70
77-78
89
110-120
127-132
34-36
38
44
51-61
73
54
60
70
80
100
127-132
1/11-0
1/6
1/11
1/11
.—
—
2/4
4/3-3/10
4/3-3/6
3/10-0
12/3
rea are different and in general higher than outside.
'
1/11-0
1/6
1/11
—
—
2/4
4/0-3/10
4/3-3/6
3/10-0
9/3
11/2-13/10
13/1
15/0
19/7-23/5
28/1
20/9
20/9
22/8-23/1
26/6-27/4
35/5-39/3
36/6-39/3
H O U S E S OUTSIDE L O N D O N
Increased by 2 S.D
Date Built
District
N o . in
sample
1
A.-Built
Gross
value
(G.V.)
£
Statutory
deduction
(S.D.)
£
Present
rents
£p.a.
Rents
increased
by 2 S.D.
£ p.a
p.a..
Maximum rents
if increase of
2 S.D. (with
stopper of
twice G.V.)
£ p.a.
8
4
5
6
7
7
3
11
4
15
6
6
10-13
14-16
10
15
10
16-18
20-23
29
33
16-22
36-44
45-47
21-33
40-48
28-33
52-59
65
36-45
60-70
65-85
12
16-19
20-22
18
23
22
28-30
32-35
41
45
30-36
50-58
59-61
35-47
54-62
44-49
68-75
81
56-65
80-90
93-113
12
14
14-16
18
22
22
28-30
30
30
33
30-36
44
45-47
35-47
50
44-49
60
65
56-65
80-90
93-113
26-31
25
32
26-32
32
70
27-39
44-52
78
37
52
56-68
75-80
100
75-80
110
36-41
37
46
40-46
46
84
43-55
60-68
94
55
70
76-88
95-100
120
95-100
142
26-31
32
36
40-42
46
70
43-55
60
78
55
70
76-88
90
100
95-100
142
,
Ai
in
P
before 1919
1850
Yeovil R.D.
...
1850
Hoole U . D . ...
1881
Watford B.
...
1908
Scarborough B.
1907
Portsmouth C.B.
1880
Plymouth C.B.
South Shields C.B.
Scarborough B.
Sputhend C.B.
1905
1880
1905
B.-Built
after
1928
1935
1934-36
1935 ..
22
7
25
7
30
8
40
50
70
10
10
14
13
16
18
21
25
5
6
7
7
7
30
8
3/
3
3/:
3/ :
3
1918
Macclesfield R.D.
Beverley R.D.
Norwich C.B.
Sheffield C.B.
1930 ..
Northampton C.B.
1935 ..
Northampton C.B.
1932 ..
Hoole U . D . ...
1935 ..
1936 ..
1934 ..
4
3
11
13
3
1
13
3
1
6
16
12
5
9
11
3
5
1
4
5
7
Southport C.B.
Leicester C.B.
Cambridge C.B.
7
22
9
104
1
2
3
5
1
1
1
13
1
4
2
35
9
45
10
50
80
10
16
5/
5/ff
6/
5/
]
USES OUTSIDE LONDON
Increased by 2 S.D.
Rents
increased
by 2 S.D.
£ p.a.
7
Maximum rents
if increase of
2 S.D. (with
stopper of
twice G.V.)
£ p.a.
8
12
16-19
20-22
18
23
22
28-30
32-35
41
45
30-36
50-58
59-61
35-47
54-62
44-49
68-75
81
56-65
80-90
93-113
12
14
14-16
18
22
22
28-30
30
30
33
30-36
44
45-47
35-47
50
44-49
60
65
56-65
80-90
93-113
36-41
37
46
40-46
46
84
43-55
60-68
94
55
70
76-88
95-100
120
95-100
142
26-31
32
36
40-42
46
70
43-55
60
78
55
70
76-88
90
100
95-100
142
Increased by 1J S.D.
Amount of
increase in
shillings
per week
The present
rents (i.e. col. 6)
are shown
below in
shillings per week
10
Maximum rents
if increase of
l i S.D. (with
stopper of
twice G.V.)
£ p.a.
11
12
13
10-5
14-5-17-5
18-5-20-5
16
21
19
25-27
29-32
38
42
26-5-32-5
46-5-54-5
55-5-57-5
31-5-43-5
50-5-58-5
40-45
64-71
77
51-60
75-85
86-106
10-5
14
14-16
J6
21
19
25-27
29-30
30
33
26-5-32-5
44
45-47
31-5-43-5
50
40-45
60
65
51-60
75-85
86-106
1/9
1/6-/5*/.
—
2/4
2/4
3/6
3/6
3/6-2/8
-/5d.
—
4/3/0-0
—
4/0
4/0-/9*/.
4/8
3/1-/5*/.
—
5/9
5/9
8/1
33-5-38-5
34
42.-5
36-5-42-5
42-5
80-5
39-51
56-64
90
50-5
65-5
71-83 .
90-95
115
90-95
134
26-31
32
36
36-5-42
42-5
70
39-51
56-60
78
50-5
65-5
71-83
90
100
90-95
134
2/8
1/6
4/0-3/10
4/0
—
4/8
4/8-3/1
—
5/2
5/2
5/9
5/9-3/10
—
5/9
9/3
Amount of
increase in
shillings
per week
Rents
increased
by li S.D.
£ p.a.
9
2/4
1/6-/5A
—
3/1
2/8
4/7
4/7
3/10-2/8
-I5d.
—
5/5
3/1-0
—.
5/5
3/i0-/9rf.
6/2
3/1-/5*/.
—
7/8
7/8
10/9
2/8
1/6
5/5-3/10
5/5
—
6/2
6/2-3/1
—
6/11
6/11
7/8
5/9-3/10
—
7/8
12/3
For comparison
:
2/4
3/10-5/0
5/5-6/2
3/10
5/9
3/10
6/2-6/11
7/8-8/10
11/2
12/8
6/2-8/6
13/10-16/11
17/3-18/1
8/1-12/8
15/4-18/6
10/9-12/8
20/0-22/8
25/0
13/10-17/3
23/1-26/11
25/0-28/10
10/0-11/11
9/7
12/4
10/0-12/4
12/4
26/11
10/5-15/­
16/11-20/­
30/0
14/3
20/0
21/6-26/2
28/10-30/9
38/6
28/10-30/9
42/4