London's Pulse: Medical Officer of Health reports 1848-1972

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London County Council 1912

[Report of the Medical Officer of Health for London County Council]

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Housing of the Working Classes.
With regard to dwellings erected to rehouse persons displaced by clearance schemes under Parts
I. and II. of the Act, the Council's practice is to charge the capital account of the dwellings with
the value of the site as earmarked for housing purposes, the account of the clearance scheme being
credited with this value. The latter account, which is charged with the cost of clearance and laying
out (less sales), is thus placed in the same position as it would have been if the Council had disposed
of the land for the erection of dwellings. In the case of dwellings erected under Part III. of the Act
the total cost of the land and of its development for building is chargeable against the dwellings.
Appendix XIX. shows the estimated commercial value and housing value in: respect
of all sites utilised for the erection of working class dwellings under Parts I. and II. of the Act,
whether the dwellings have been erected by Dwellings Companies or by the Council. As regards
sites sold to Dwellings Companies, the aggregate commercial value at the time of disposal is estimated
at £472,100, and the aggregate housing value as represented by cash received from Dwellings Companies
is £198,915, the difference of £273,185 being charged against the clearance schemes.
The aggregate commercial value on the same basis of sites acquired or appropriated by the Council'is
estimated (at £465,804, and the housing value charged to dwellings accounts at £163,361, the
difference of £302,443 being charged against the clearance schemes.
As regards the debt on dwellings and estates, the decision of the Council on the 7th May, 1912
(Minutes, page 1071), as approved by His Majesty's Treasury, to vary the method of stating its stock
debt, in respect of the separate services, from the cash basis to the stock (par value) basis, has been
given effect to as on 31st March, 1913. In place of the liability represented by the net cash raised
by the stock, the par value of the stock outstanding appears as a liability in the balance-sheet
(page 16), with an item on the assets side for expenses of issue.
Appendix XVIII. shows the capital expenditure on the clearance of insanitary areas under
Parts I..and II. of the Housing of the Working Classes Act, 1890, as distinct from the expenditure
on dwellings. The net capital expenditure to 31st March, 1913, under both parts of the Act for
clearance schemes, amounted to £2,518,125 2s. Id. The capital expenditure during the year 1912-13
amounted to £2,187 4s. 8d., being mostly in respect of the new Tabard-street, etc., scheme.
Capital expenditure
Dwellings under Improvement Ads.
These dwellings were erected in pursuance of statutory obligations to provide rehousing
accommodation for persons displaced by improvements, etc., under various Acts of Parliament.
Certain dwellings were erected on sites on which, owing to their character or situation, an unfavourable
financial result was from the first anticipated ; these are shown under a separate head.
The result of the year's working of Dwellings under Improvement Acts is a net surplus of
£3,093 18s. 9d., as compared with £2,859 18s. 9d. in 1911-12.
Results of
The gross rental for the year from dwellings was £55,835 14s. 2d. (page xlviii). Deducting therefrom
allowances for empties, caretakers' quarters, and amounts irrecoverable, the net rental amounted to
£52,878 lis. 10d., exclusive of £181 6s. 5d. for interest on cash balances. The amount of rent irrecoverable
was £41 18s. 2d., or only 0-08 per cent, of the gross rental. The total loss of income due to
" empties " was £2,356 6s. lid. or 4-22 per cent, of the gross rental, as against 4-89 per cent, in 1911-12.
The greater part of this loss occurred on three estates, viz.: Durham Buildings (£394 or 29-23 per cent,
of gross rental), Hughes Fields Dwellings (£144, or 22-46 per cent.) and Swan-lane Dwellings (£843, oi
20.46 per cent.), which account for £1,381. On two other dwellings the loss from empties was more
than 10 per cent, of the gross rental.

The total expenditure on dwellings was £49,966 (pages xlviii and xlix).

1911-12.Per cent. of gross rental1912-13.Per cent. of gross rental.
£Working Expenses—£
4,3717.77Supervision and Collection of rent4,5238.10
8,64315.36Rates and taxes (less tax on interest on debt recovered)8,25814.79
2,5444.52Lighting, heating, water and insurance2,5324.53
860.15Stores and incidentals860.15
5,2539.34Repairs and renewals (transfers to fund)5,2939.49
Debt Charges—
Interest (gross)—
Sinking Fund—
50,18789.21Total Expenditure49,96689.49
3,3936.03Net deductions from gross rental (empties, etc.)2,9575.30
2,6774.76Surplus on dwellings (excluding interest on cash balances)2,9135.21
56,257100.00Gross rental55,836100.00

18820 GG