DWELLINGS FOR THE LABOURING CLASSES. [To THE EDITOR OF THE
"SPECTATOR."] Sus,—In the article in your number of January 12, upon the "Reconstruction of London," you say, after quoting the rents at which it is proposed to let the rooms in " Gatliff Buildings," " E ven on these terms, which will leave the Association some 1,5007. or 1,600/. a year to receive ;" and in these figures you have quoted the gross rental before expenses are paid. The exact facts are these :—The Marquis lets the land for 99 years, at a moderate ground-rent. He lends the whole cost of the building at 3 per cent. interest, and gives to the working man the benefit of this by stipulating that the rooms shall be let at rents well within the compass of his income.
From the gross rental of 1,600/. a year have to be deducted rates, taxes, repairs, sinking fund, insurance, &c., after which it is expected that the Association will receive about 400/. a year profit, or 2 per cent. on the (Marquis's) capital of 20,0001., for the management of this block of buildings.
Many persons may say that the special advantages given by the Marquis are not calculated to aid the cause of dwellings for the poor in a large and commercial point of view. I admit that until the subject of improved dwellings for the industrious classes is made one of large commercial enterprise, and entered into for remuneration, it will never be taken up properly. But the object of the Marquis is to benefit his less fortunate tenants, and give an impetus to the movement. In this he sets a good example, and one which, as you say, the Government will do well to act upon: This Association has now an application before the Government, under the Labouring Classes' Dwelling Houses' Act of last session for an advance of 18,000/., to enable them to build about 120 cottages on 8 acres of freehold land at Penge, upon which they have already built 36; and I believe that if under this Act loans are made, such a course will enable existing companies to declare a rate of dividend that, coupled with the valid nature of this security, viz., improved dwellings substantially built on freehold or long leasehold property, will make their shares marketable in the usual course of business.
I feel very strongly that the day is coming when capitalists will see that an investment in the erection of improved dwellings is a safe and remunerative investment, and that associations such as that of which I am secretary will soon have their shares quoted on the Stock Exchange, and be recognized as some of the safest and best channels of investment.—I am Sir, &c., CHARLES GATLIFF.
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