HOUSE RENTAL.

Press, Volume LVI, Issue 16853, 5 June 1920, Page 10

HOUSE RENTAL.

LEGAi POSITION DEPINED.

In connexion with the prevailing shortage of houses, the following announcement, made by the Labour .department, is of interest:— • Ono reason for the hesitation of builders and. others in the erection of houses for letting purposes has been the impression that the rent restriction law limits all rentals to S per cent, of tho capital value. It has, in, fact, been stated that by this result the. law has tended to defeat its own object." On reference to the War Legislation Acts it is found that the 8 per centum provision docs not apply "to new houses. The effect of the law is thus: Where the rent charged for a dwelling let before August 3rd, 1914, was less than 8 per cent, of its capital value, it may "be increased by the landlord, but not to an amount exceeding 8 per cent. IF the rent already exceeded 8* per cent, per annum, this rent may bo maintained, but cannot be increased. In* the case of a dwelling let for the first time, or subsequently to August 3rd, 1914, the 8 per cent, of the capital value does not apply, and tho only restriction is that the rent at which it was first let. whatever its proportion to tho capital value, may not be increased. I