RENT RESTRICTION

Dominion, Volume 13, Issue 11, 8 October 1919, Page 5

RENT RESTRICTION

LABOUR DEPARTMENT'S WORK REVIEWED. During- the year ending March 31 last, 234 applications for reduction of renta being charged for dwelling-houses were received by tho Labour Department. Ol this number 118 wera received in the Wellington office. Seven of the latter were taken to Court, and in nix instances the Court held that the increaso was not justified. Seventy-four cases wore settled out' of Court, and in 43 of these cases the rent was reduced. The cases withdrawn totalled 11, in 15 of which tho increases' were not justified. "This Act," the -report of the Department of Labour states, "has continued to bo of considerable benefit to tenants, especially in Wellington. Tho. provision requiring that, in certain cases, tho rent shall not exceed 8 per cent, of the capital value has undoubtedly, however, had tho effect of discouraging the building of houses,. thereby accentuating _ tho very difficulty that the rent restriction law was designed to overcome. Eight per cont. 18, hi fact, hardly sufficient to allow the owner 6 per cent, interest on his outlay. . . . We still -receive a fw complaints that tenants who are protected by tho law as regards their rent make a practico of sub-lotting parts of their houses at high rates. Example: Rent, £1 os. per week; rent.obtained by sub-' letting part of hons-3, £'J 18s. per week. The sub-tenants do not, in most cases, have the protection of the Act unless tho rents of the rooms in question havo been raised beyond 8 pe? cent, of their capital yalue since August 3, 19U. In any event these cases are very difficult to deal with on account of tho fact that the eub-lettiiig of rooms' is frequently accompanied by tho use of kitohen and wnshhouse conveniences, lighting, and firing.-" .