View report page

56
should be obtained so as to empower the Council to acquire land outside the County of London for
the erection of working-class dwellings, and that it be referred to the Committee to consider and report
whether the special provisions of the Act as to the compensation payable in respect of property taken
within unhealthy areas can be equitably amended so as to reduce the heavy cost of clearance schemes
to the ratepayers, and to compel the owners of insanitary property to bear the whole cost of rehousing
all persons displaced from such areas.
(6) That the Housing of the Working Classes Committee be authorised to appoint a deputation
to wait upon the Secretary of State for the purpose of urging him to introduce a bill in the next
session of Parliament for the amendment of the Housing of the Working Classes Act, 1890, so as to
empower the Council to acquire land outside the county of London for the erection of working-class
dwellings.
In March, 1900, the Housing of the Working Classes Committee again reported on the
subject of amendment of the Act, and in reference to a resolution of the Council of 1896, that
power should be sought to modify a scheme after the lapse of three years from the date of the
clearance of an improvement area, in order to enable the Council to sell the laud freed from the
conditions imposed by the scheme and with the money so obtained to purchase other lands to be
devoted to the provision of accommodation for persons of the labouriug class, that the Committee
were of opinion the words "in exchange" should be inserted after the word "sell," and
that they had so informed the President of the Local Government Board. The Committee also
stated that the Secretary of State had expressed his approval of a proposal of the Council that
where land is acquired under Part III. of the Act for the purpose of relieving schemes under
Part I. or Part II. or street improvements from re-housing obligations, thereby freeing surplus
lands under such schemes for disposal at commercial value, the Council may be empowered to
make such transfers as between Part I., Part II., or street improvement account, and the Part III.
account, as shall cause the accounts to show the proper cost of the schemes with which they
deal.
The Committee further reported on other points as follows—
(1.) As to the inclusion in the scheme of additional properties. With regard to schemes under the
Act the confirming authority has power to exclude properties from the operation of the scheme prepared
and submitted by a local authority, but has no power to include any further properties. It
sometimes happens that after a scheme has been prepared it is found desirable, for the purposes of the
scheme, to include certain properties within the area to be dealt with. The persons interested in
such properties have not been served with the requisite notices under the Act, and this appears to be
the reason why the confirming authority has no power to include such properties. The scheme would
therefore have to be proceeded with on the lines as originally drawn, or be abandoned for another year.
We think that that there would be advantage if, at the time of the inquiry by the Commissioner
of the confirming authority, it is represented that any property not in the scheme should be included
in it, that the Commissioner should be authorised to adjourn the hearing, with a view to notices
being served on the owners, and any objection they may offer submitted at the adjourned meeting.
After hearing such objections, if any, the confirming authority should be authorised, if it thinks
desirable, to include such additional property in the scheme.
(2.) As to the sale of dwellings within 10 years of completion. Section 12, sub-section (5) of the Act
provides that " if the local authority erect any dwellings out of funds to be provided under this
part (Part I.) of this Act, they shall, unless the confirming authority otherwise determine, sell
and dispose of all such dwellings within ten years from the time of the completion thereof." We
are of opinion that this section is of grave importance to the Council. If the Council is required to
sell its dwellings as provided for by this section we feel that this course would only be effected at a
great pecuniary loss. Moreover, the supervision which the Council is at present able to exercise over
its dwellings with regard to keeping them in proper repair, and with regard to administration generally,
would be done away with. The rents which at present are regulated under the Council's standing
orders would pass out of the control of the Council in the event of a sale, and would in all probability
be increased. We feel most strongly that it would be a great misfortune, not only to the Council, but
also to the tenants, if the Council were required to part with its dwellings. With regard to the
question of financial loss, the accompanying figures, prepared by the Council's valuer, will show how
the Council would be affected.
Dwellings in respect of which the actual cost has been ascertained—
Probable selling value at expiration of 10 years from completion £53,000
Actual cost to the Council, including value of site 102,296
Loss to the Council by selling 49,700
Or over 48 per cent, of the cost.
Dwellings now in course of erection, the actual cost of which has not been yet ascertained—
Probable selling value £198,000
Estimated cost 326,000
Loss to the Council by selling 128,000
Or nearly 40 per cent, of the cost.
In addition there are in course of erection dwellings at Millbank, Westminster, for displaced
persons from the Clare-market, Strand, area ; at Somers-town, St. Pancras ; and at Brook-street and
Cable-street, Limehouse, estimated to cost, including value of land, about £136,000. Assuming the
loss in these cases to be the mean of the above percentages, say 44 per cent., the loss in money to the
Council would be £60,000.
The total loss on the dwellings under consideration would therefore be £237,000.
(3.) As to compensation payable in respect of insanitary property. In consequence of the enormous
cost to the Council of clearing insanitary areas, owing to the compensation clauses of the Act, which
enable an arbitrator to give commercial value for the land, i.e., the value of the land for the purpose
of erecting factories, warehouses, theatres, hotels, and other commercial property, we thought it
right to call the attention of the President of the Local Government Board to this point, more
especially as the Council has referred it to us to consider by resolution of 19th December, 1899.
We have therefore forwarded to the Local Government Board the following expression of opinion—
That the law should declare that it is the duty of the freeholder to see that dwelling houses
on his property are fit for human habitation by enforcing the repairing clauses in his leases, and
taking all other necessary steps. Where an official representation under the Act has declared
that the dwelling houses in question are not fit for human habitation, the freeholder should have
the power to re-enter into possession, but there should be put upon him the obligation to rebuild
upon the site dwelling houses for the working classes. In the event of the freeholder not
fulfilling this obligation, the local authority should be empowered to take possession of the land,
paying only the market value of land, subject to the obligation to rehouse persons of the working