HIGH RENTS

Dominion, Volume 10, Issue 2907, 20 October 1916, Page 6

HIGH RENTS

little relief for tenants

THE RESTRICTION LAW

Wellington rentpayers do not appear to have obtained any substantial measure of relief through the legislation placed on tho Statuto Book during the last sossion of Parliament. Rents, regarded generally, are, it appears

from Inquiries made, rising still in this city, and tho keen and unsatisfied demand for houses indicates, that tho movement is likely to continuo. Statistics from the other. centres show that rents have tended to decline during

Uie war period,, particularly in Christchurrti, where good dwelling-houses at tho present time aro reported to bo plentiful, and, comparatively speaking, cheap. But Wellington could use several liundred additional houses at onco

it the rents were reasonably low, that is, from 15s. to 255. per week. Tho rent-restricting clauses of tho War Legislation Amendment Act, passed during the last session of Parliament, provided that tho rent paid for a dwelling-house at the beginning' of August last, prior to tho outbreak of war, should "bo tho standard rent, and

that landlords should n,ot bo entitled to increaso it except under special circumstances named In the Act. The measure protected the tenant against ejection without reasonable cause, so

that an old tenant might not have to bid against a would-be now one. Theso

provisions have been of assistance to somo families, which occupied houses at the outbroak of war, and have not had occasion to movo since that time. Threatened increases of rent havo been averted in certain cases, and. a fow tenants havo secured tho withdrawal of

increases that had already been imposed upon them: But there appears no doubt that to a largo extent tho intention of the Government and Legislature has been defeated, as far as

Wellington is concerned by the actual shortage of houses causing tenants to corno into competition with one another, and so giving landlords tho benefit of tho normal operation of tho 'law of supply and demand. The Prime Minister explained, when introducing • the War Legislation Amendment Bill last July that tliero ivas nothing in tho rent-restriction proposal "to prevent tho landlord and tho tenant making a bargain to suit themselves," although it would "not bo possible for the landlord to sue for the difference between tho rent charged prior to tho outbreak of war and any increaso which might have been made since that date." Tlio law does not fix tho rent definitely at the jfre-war level, and it follows that when a house falls empty tho new tenant must be prepared to pay current rates, by ngreoment with 'tho landlord, who probably will have several eager homeseekers to chooso among. Old tenants in some instances have consented

to pay increased rents, since they knew Hie landlord could get the money elsewhere, and they did not caro to disputo the occupation of his house in Court.

Much building is proceeding in the city and suburban areas at the prosent time, in spite of tho high prices of all materials, but it is stated that most of tho new liousob are being built for owners. A house agent to whom

the subject was mentioned by a Dominion reporter yesterday, said that there seemed to he no chance at all of the supply of homes in Wellington overtak-

ing the demand for some time to come. "Landowners and builders might bo prepared to provido additional dwellinghouses on a large scale if they were assured of tho maintenance of good rents and a keen demand," he added, "but the conditions obviously aro not normal. Tho war will end some day, and then the military camps will bo emptied, and many families drawn, to Wellington during tho war period will •bo distributed again. Thero was a

shortage of houses in this town before the war, but it did not appear to bo acute, and building was gradually

overtaking it!' I could find tenants for a hundred houses of from four to

sevon rooms during the present week.

but I could not undertake to keep those houses full when the war ends."

It has been suggested that building will be cheaper after the war than it is at the present time. Men engaged in the trade are inclined to doubt if that will he tho case. They point out that a stupendous amount of reconstruction will have to be undertaken in the war area, and they anticipate that the present high prices of building materials" will be maintained for some years after the conclusion of

pcace. Much building has been suspended in New Zealand during the war period, and its' resumption may increase the difficulty.