NEW HOUSES FOR LETTING

Dominion, Volume 13, Issue 213, 3 June 1920, Page 4

NEW HOUSES FOR LETTING

WHAT THE RENT RESTRICTION ACT SAYS.

One reason for tho hesitation of i Imiklors -and otlicrg in. Greeting houses ■for letting purposes (writes a 'correspondent), has been the impression that tho rent restriction law limits all rentals to eight per centum of tho capital value. It has in fact been stated that by this result the law hns tended to defeat its own object. Oil reference to the War _ legislation Acts it is clear that tiie eight per centum provision does not apply to new houses. The effect of the law is as follows:— (1) Where the rent charged for. n dwelling let before August 3, 1911, was less than eight per centum of its capital value it may be increased by the landlord, but not to on amount exceeding eight per centum, If the rent already exceeded eight per centum this rent may be maintained, but cannot bo increased., This is the "standard" rent. (2) In the case of a dwelling let for the first time on or subsequently to August 3, 1914, tho eight per centum of tho capital ralue docs not apply, and the only restriction is that the rent at which it was first let, whatever its proportion to the capital value, may not be increased.