LAND SALES

Ashburton Guardian, Volume 70, Issue 107, 18 February 1950, Page 4

LAND SALES

CONTROLS REMOVED FARM AREAS EXCEPTED (P.A.) WELLINGTON, Feb. 17. The Government has decided to remove all controls of land sales, except those affecting farm land. “This will mean,” said the Prime Minister (Mr Holland) this evening, “that as from the gazetting of the regulations next week, all land and interests in land, except farm land, can be bought and sold, and otherwise dealt with, free of the controls to which they have been subject since 1943. “After a very thorough investigation and full consideration of the whole situation, the Government has decided to free all residential property, rather than retain control of those between certain values, as was originally contemplated,” Mr Holland said. “The retention of control within this bracket was intended to be the first step towards the complete abolition of controls, but as this ultimate step was, in any event, not to be long delayed, the Government finally came to the conclusion that there was no point in making two bites aat the cherjy.” “It is confidently believed that prices will not exceed those known to .be paid in most cases, in spite of the complicated and expensive systems of controls,” Mr Holland said. “There are also factors which the Government feels confident, will keep prices down. Very few people will be able to purchase properties without financial assistance, and the amount which the lender will be prepared to advance will set the limit to the price at which properties will change hands. In the second place, the result of the abolition of the controls will mean that more properties will come on to the market, and this will produce competition—the best price' regulator of all —and by giving the buyer a wider selection will give him a greater opportunity for negotiating his own price and terms.” Mr Holland explained that the retention of control over farm lands -was necessary first in the interests of the rehabilitation of former servicemen, and, second, because the Government’s policy of easing controls on the sale of farm land could only be implemented by legislation. That legislation would be introduced into Parliament during the forthcoming session. Mr Holland concluded by observing that the steps now being taken were in fulfilment of his party’s pledge to restore to the people a susbtantial measure of the freedom which had been such a diminising quantity during the last 14 years. Plans to acquire roads and subdivide land for sale to individual house builders are also announced by the Prime Minister. The Government also intends, he said, to offer for sale to home builders sections already owned by the Crown In State housing blocks. Sections in blocks where subdivision has been completed and services are now available or are in course of construction, can be sold as soon as arrangements can be completed. "Sections will be sold separately at a price fixed by valuation,” said Mr Holland. “Should there be more than one purchaser offering, a ballot will be held, otherwise the sale will be by private contract. However, not more than one section will be sold to any one purchaser. For the first year 50 per cent, of the sections available will be offered to ex-servicemen eligible for rehabilitation housing assistance. After one year exservicemen will receive whatever preference, is thought still necessary.” As soon as possible plans showing sections to be sold would be displayed at branch offices of the Lands and Survey Department, Rehabilitation Department and State Advances Corporation. The conditions of sale would be that the purchaser should erect on the section a home for his own occupation. This would be done within one year, or in such further time as may be necessary. Until the house was built temporary lease would be issued until the actual sale had taken place, either for cash or on deferred payment terms when the house had been built. If the section were bought on deferred payment the amount owing would be taken into account in fixing the limit of any building loan applied for in all cases. Sales would be made in terms of the Land Act, of 1948 “There are two kinds of building sections in State housing blocks.’ said Mr Holland. "There are those legally subdivided and surveyed and tnose provisionally subdivided, but still legally forming part of a larger block, conditions ot roudmg, drainage anu services generally, vary greatly. some sections are ready U> be built on immediately, while outers are in the process of development. It subdivision is completed aim services aie ready for use or are in the course ot construction then the sections can be. sold on the erection of a lumse. Other sections can be sold unde t the sale note or an agreemem foi sale and purchase and title will tot t, u > when sections have been sttl)di\ ideei. These plans, by making more sections Sri ■ llouscbuUd.liK. have a steadying direct lilt tial section market. I lie.' | example of the Government s piacticat policy of encouraging more iind more people to own their homes.