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Homing of the Working Classes.
187
and Wormwood-scrubs, for the purpose of constructing an outlet from the eastern section of the
estate in the north-west corner. The purchase price amounted to £1,500, in addition to certain
expenses incurred by the vendor, which the Council agreed to pay. The portion of this land not
required for the proposed new road will, owing to its shape and position, probably be found more
suitable for addition to the open space than for a building site, and the land has accordingly been
conveyed partly for housing purposes and partly for an open space.
Leasing of
cottages to
tenants.
During the year the Council considered a suggestion that a scheme should be introduced to
enable working men to buy their own houses on easy terms. The only power which the Council has
at present of advancing money to enable persons to acquire the ownership of the houses in which they
reside is conferred by the Small Dwellings Acquisition Act of 1899. The number of loans granted
by the Council under this Act has been very few, and this is probably due to the fact that the
cost of property in London may almost be said to prohibit working-class people from acquiring houses
under the terms of the Act, whereby a considerable sum of money has to be found by the applicant,
the advance by the local authority being limited to four-fifths of the amount which, in the opinion of
the local authority, is the market value of the ownership. The Council felt, therefore, that in order
to make a successful scheme which would appeal to the working classes it would be necessary to
advance practically the whole of the sum required for the purchase of the house. The Council would,
of course, require to be fully safeguarded against financial loss, and it was thought that this object
could best be secured and the most advantageous terms offered to the prospective purchaser
by applying the proposal to some of the estates which the Council had purchased under
Part III. of the Act of 1890. As regards the nature and extent of the interest in the property
to be acquired by the purchaser, the Council thought that, in preference to disposing of the
freehold, a lease should be granted for a term of years. Parliamentary sanction to this course was
necessary, and the Council therefore on 7th November, 1911, resolved to apply to Parliament in the
session of 1912 for powers to enable it to grant on such terms as should it think fit to persons of the
working classes, leases for any period not exceeding 99 years ot houses provided by the Council in
pursuance of the provisions of the Housing Acts.
The scheme which has been provisionally approved by the Council provides for payment of a
ground rent to be made by the lessee throughout the term of the lease, and for the cost to the Council
of erecting the buildings to be repaid by the lessee during the first 15, 20 or 25 years, at his option, in
the form of a weekly rent covering principal and interest. The rate of interest to be charged under
the scheme is to be, as nearly as possible, the rate, either estimated or actual, at which the Council
can raise money by the issue of stock after allowing for the expenses in connection therewith and all
other charges, that is to say, such rate of interest as will entail no loss to the Council.
In order to bring the scheme within the reach of the working classes it was essential that the
initial payment should be made as small as possible, and as the Council would retain the freehold
of the property and a considerable amount of control, it was thought to be sufficient if the lessee
were required to pay a sum of £5 as deposit and in part payment, on taking up" the lease. The legal
costs and other expenses are, in the first instance, to be paid by the Council, and the ground rent
is to include an amount sufficient to cover these and other incidental expenses.
The prospective lessee will have to satisfy the Council that he has a bona-fide intention
of residing in the house; but the scheme provides that he may, with the Council's consent,
subsequently let the house to an approved tenant, the necessity for such consent and approval to apply
only during the repayment period. The lessee is to be allowed to transfer the lease at any time
subject, during the repayment period, to the Council's consent, which is not to be unreasonably
withheld. As, however, it might not always be possible for the lessee to find a suitable assignee,
the Council felt it essential that it should have power to accept a surrender of the lease and to make a
payment to the lessee in consideration of such surrender. The charges to the lessee will be fixed as
low as possible without involving a charge upon the rates.
The task of managing the Council's dwellings, which on 31st December, 1911, contained accommodation
for 53,811 persons, is one of considerable magnitude, and a special department has been
established for the purpose.
Dwellings
provided by
the Council.
Dwellings capable of accommodating 2,468 persons were completed during the year 1911 at an
approximate cost for buildings and plans of £74,790. The erection of new cottages designed to
accommodate 2,328 persons and other works incidental to the development of the various estates were
undertaken during the year, and the total cost thereof is estimated at £81,469.
The standing orders of the Council require that all dwellings shall be so designed that the cost
of erection may not exceed a sum which will enable all outgoings, interest, and sinking fund charges,
to be paid without placing a charge upon the county rate, and the rents to be charged are not to
exceed those ruling in the neighbourhood. Some of thedwellings erected by the Council do not fulfil
these requirements; but this is mainly due to the fact that the Council was obliged to build on sites
which were so unsuitable as to be unsaleable for the purpose.
New working
class
accommodation.
With a view to the Council being kept informed as to tihe provision of working-class accommodation
in London and the adjoining districts, a return* is prepared each year showing the amount of new
accommodation provided and old accommodation destroyed. The return, which has been prepared
for the years 1902 to 1910 inclusive, gives the number of working-class tenements and rooms provided
in each borough or district and the average rents at which they are let or to be let; and particulars
of the demolitions which have taken place in each district are also given separately. The return for
12532
working-class accommodation.
z 2