Orders of the Day — Housing Repairs and Rents Bill

Part of the debate – in the House of Commons at 12:00 am on 30 November 1953.

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Photo of Mr Donald Wade Mr Donald Wade , Huddersfield West 12:00, 30 November 1953

I should like, first, to address a word to the hon. Member for Stoke-on-Trent, South (Mr. Ellis Smith). I hope he will understand that if I disagree with some of his comments I do not for a moment doubt the sincerity of his views. I did not have the experience which he had before the war, but in the 20s I spent a number of years as a poor man's lawyer in the slums of Leeds, where I interviewed a great many tenants and learned much about their problems. If I hold views different from those of the hon. Member for Stoke-on-Trent, South it is not through any bias in favour of the landlords.

In assessing the merits and demerits of the Bill one has to consider the alternatives, and it is consideration of the alternatives which leads me to be more sympathetic towards the Bill than I might otherwise be. It has already been pointed out that no one seriously contends that we should leave things as they are, for the consequences are all too clear. They are, in particular, abundantly clear in the North of England.

I do not want to start an argument as to whether the situation is worse in the North of England than elsewhere, but I was interested in an article in the "Manchester Guardian" on 19th November, 1953, which made a comparison between the Midlands and the South and the North of England. It said: In the towns and cities born of the Industrial Revolution…the situation is vastly different. It is here that the real problem of conservation lies—the problem not only of hundreds of thousands of irredeemable slums that cannot be replaced for many years, but of millions of dilapidated houses that are becoming irredeemable faster than new houses can be built. None of us doubts the seriousness of the deterioration of these houses, but the question is what policy we are to adopt. I am in disagreement with the policy which has been put forward by the Socialist Opposition. I do not doubt that the Opposition hold their views sincerely, but in view of the cost involved and the administrative difficulties, I think it is quite unrealistic to suggest that all rent-restricted properties should be handed over to local authorities.

It is no solution to say that that could be done gradually as local authorities find themselves able to cope with the task, for then it might well take 50 years. If it were to be an immediate policy, it would involve a vast increase in administrative costs. Incidentally, I believe that the cost of repairs as well as administration would be greater if carried out by a local authority instead of by an individual landlord.

Therefore, by a process of elimination, one has to find a policy which is a combination of creating greater activity on the part of local authorities and giving greater encouragement to private landlords. Accordingly, I do not think that the issue before us today should be considered from the point of view of whether or not the Bill is fundamentally wrong, but from the point of view of to what extent it will work and to what extent it is fair to all parties—the community, the landlord and the tenant. In attempting to answer the question "Will it work?" a distinction has to be made between the small owner and the large owner. By the "small" owner I mean the owner of a few houses—generally less than half a dozen—and by the "large" owner I mean the property-owning investment company and the owner of large blocks of houses.

The latter are more likely to make use of this Measure because they have greater facilities for raising capital. They can go to the banks. I do not criticise the banks. I have a very high opinion of both the courtesy and the efficiency of our banks, but I think there is an element of truth in the saying that a bank is an institution which lends money to those who can prove that they do not need it.

Large owners will pay more regard to the capital appreciation that will follow as a result of a general increase in rent. Smaller owners will be in greater difficulties. It will be a serious problem for them to raise the necessary capital, sometimes a considerable sum. For example, repairs to a roof can be very expensive, and it may take many years for them to pay off that amount out of increased rents. There will be very real difficulty in raising the money.

The problem is further complicated by variations in rating assessments. As the Minister knows in connection with the inequitable distribution—I will not ask him to accept that description—of equalisation grants, there are wide differences, not because of variations in amenities or differences in site, but because in some areas rating has been on a lower basis. We shall find that some owners are disqualified not because the rents were high, but because the assessments are exceptionally low.

The threefold problem is high cost of repairs, the difficulty of raising capital, and variations in rating. There is no simple solution. I wish there was. We have to tackle the problem in a variety of different ways. Amendment of the Housing Act, 1949, will help, but that of course deals only with improvements and not with repairs. I am speaking very hurriedly in order to allow time for the hon. Gentleman who is to follow me.

Has the Minister given consideration to making greater use of loans? I see no other adequate solution to cover the gap between those properties where the landlords will be able to finance the necessary repairs and those properties which come within the category that should be taken over by local authorities.

There is an intermediate class, and I think those in it might be dealt with by local authority loans. I doubt whether existing legislation is adequate, and I would put forward one suggestion. There seem to be three considerations which are relevant. One is the need for keeping as many houses as possible in repair. The next is to avoid overburdening local authorities with too many houses to manage. The third is, out of fairness to the community, the need for ensuring that landlords do not make a capital profit out of grants or loans provided by the community.

I suggest that we consider the precedent in the Housing Act, 1952. The Minister will remember that in Section 3 (3) there is a provision whereby the local authority has an option. In that case it is only for five years. I contended at the time that five years was not long enough. It might be practicable, where loans are made, to impose a condition that there should be an option given to the local authority, that is to say that the owner should be precluded from selling without first offering the property to the local authority at the value prior to the carrying out of the repairs, and that condition should continue until the loan is paid off.

I should have liked to speak on the subject of building costs and mobility, but I intend to keep my promise to be brief. However, I wish to say a few words on the subject of notices. I do not feel happy about the provisions in the Second Schedule. Is it really necessary that the notice should be only for a period of 14 days? A tenant may be away on holiday for 14 days. It does not seem right that the period should be so short. I am speaking of the amounts which have to be stated in the declaration by the landlord; I am not referring to Clause 21, but to the Second Schedule.

So far as notices are concerned, I would prefer the landlord to be required to get the necessary certificate. I can see the administrative difficulties involved, but I would rather it were that way round. But if the provision is to be as proposed in the Bill, then it is most important that the tenant should be given all the necessary information as to his rights in the notice which is served upon him. He should be told, not only what are his rights, but also the address of the place to which he should go if he is not satisfied.

I referred at the beginning of my brief comments to the days when I was a poor man's lawyer. Very few tenants who came to see me knew where to go to inquire about the matter, and I do not think that any of them could understand the calculations. If the landlord is to serve a notice on the tenant, then the tenant should be informed not only of his rights, but where he should go if he objects.

The right hon. Member for Ebbw Vale (Mr. Bevan) used the word "demagogy." For anyone with an aptitude for demagogy—which I certainly have not—it would not be difficult to make out a case condemning this Bill on the ground that it was harsh and unjust and would put money into the pockets of the landlords. It would also not be difficult to condemn it on the ground that it does nothing for the landlord. But it would require rather more ingenuity to condemn it for doing both these things at the same time.

I do not think either of those condemnations serves any useful purpose in the solving of this very difficult problem, and because it is so urgent a problem, and because I have been unable to find any satisfactory alternative, I think that the proper course to adopt is to give this Bill a Second Reading.