THE HOUSE HUNGER

Dominion, Volume 12, Issue 301, 16 September 1919, Page 6

THE HOUSE HUNGER

ONE CAUSE OF THE SHORTAGE

RENT LEGISLATION

"House-hunger is just as bad as ever,'" said a well-known land agent to a Dominion reporter. "Indeed as far as wo are concerned it is getting worse. Peoplo aro prepared to pay almost anything to get security of tenure in Wellington. This, I believe, will make the liouso boom as acuta as it was in 1905, nud must result in a big growth during tiio next year or two.

"Several causes liavo been put forward for tho phenomenal shortage of houses in "Wellington, but it is not only in Wellington that this sort of thing exists, nor is it confined to New Zealand. It is world-wide. Tho principal cause, I suppose, is the demobilisation of millions of men who want to marry tho girl they left behind them, or perhaps want a little better house—if ho was a married man—than he had before the war. Then there are those people who have been put on their financial feet by the war— they all want nicer places to live in and won't bo happy till they get them. "Ouo of the causes, however, that has not been touched upon, and is really militating against the building of houses, is tho legislation which interferes with tho rents. Everything in tho world is governed by the 'law of supply and demand, and if an investor who went in for building finds that lie cannot got a fair return on his property he stops building. That is what lias happened in Wellington. There is no one building for the people. There nro Bomo building for themselves, but few for other people, Why:' Because a return of 8 per cent, only is allowed, and that is not sufficient. Based on tho 1914 values it is a gross injustice to landlords, as since then tho sovereign has shrunk from 20s. to 12s. or 13s. in value, yet the house-owner is not permitted, in some cases, to get in rent to-day the equivalent (in value) of what he got in 191 i. Everyone else is, barring the houscj owner. That is why the speculative builder is not operating to-day as ho did in the big boom of fifteen years ago. Everyono knows that in Wellington the return should be at least 12 per cent, to cover rates, insurance, repairs, and depreciation, so that when a man is only offered S per cent, lio draws in. and his action accentuates the shprtngo of houses quito naturally. I prophesy that as soon as tho War Regulations aro lifted in this regard, and rents are not under any restriction, that a building boom will commence—and that in the long run is tho best panacea for high rents, after all." SUGGESTED KEMEDIES. By Telegraph—Press Association. Christchurch, September 15. Tho Palinerston North Borough Council recently passed a resolution recommending to tho Government that when making grants to returned soldiers to enable them to purchase homes, such grants should only bo given on condition that tho money was utilised in tho establishment of new homes, and hot for tho ncquisition of dwellings already ill existence.

Tlio Christchurch City Council considered this resolution to-night, and passed tho'following motion:—"That this council is of opinion that it would lie unfair to impose such a restriction upon returned soldiers as suggested by tlio Palnicrston Council. Wo are further of opinion that tlio pronounced shortage of houses in tlio Dominion should be remedied by the Government and municipal authorities carrying out building schemes."

During tho discussion tlio hope was expressed that the council would do something immediately to remedy thfa acute shortage of houses in Cliristchurcli. Ono councillor said that only that day a man liad been refused a lease of a houso because ho had four children.