Building Decline.

Hokitika Guardian, 20 August 1921, Page 1

Building Decline.

REASONS FOR HOUSE SHORTAGE. BETTER INVESTMENTS ELSEWHERE. (Lyttelton Times.) The steady decline in building of recent years is one of the chief causes of the housing shortage and consequent overcrowding. The reasons for the decline are numerous. Mr W. H. Winson, who is endeavouring t-o overtake the deficiency by his scheme of ehSeap houses, believes that financial stringency is the chief cause.

“There are a number of reasons for the decline,” said Mr Winsor. “First of all. there is the fear among people who have a hit of money that the hot torn has not been reached as regards the financial stringency, and they arc holding on to their cash which they would otherwise .speculate with. When T say holding on to their cash. of course it is understood Fhat many of them are investing it in what they consider sounder and more lucrative undertakings. For instance,, take the companies that have been calling for much money: and also the local bodies that arc offering far more interest on temporary loans than formerly. People who have a few hundred pounds arc putting it into these channels.”

Rocont disclosures of overcrowding would have a had effect on speculative building, Mr Winsor added. Persons would not build to let if their houses were going to become overcrowded slum areas, with rapid deterioration consequent on overcrowding. Money was available, hut people were afraid to invest, it in houses. Before the war what kept, the supply of houses up was that very frequently a man was Inveigled into buying a section as a speculation, and soon found that it was “eating its head off” ns long as it lay idl<> Therefore he borrowed money and built a house, realising that, even if it were let for a low rental, he would be better off. Hundreds were doing this, and sol ling for a small or large profit and building again. The present financial stringency had knocked a lot of that on the head, coupled with which were the ridiculously high prices that werrbeing asked for houses. The legislation protecting tenant 1 - from eviction, Mr Winsor conceded was another reason for reduced building. hut lm said that he did not object to the legislation, and he did not object to immigration at the present moment. for the immigrants belonged to Iho industrial classes and by their labour they would more than help t-o overcome any problems they might create. The country needed more labour. Several builders and architects whose opinions were sought, said that the principal cause of the decline was the absorption of money by commercial concerns at comparatively high interest. Many small sums were invested in that way. and little monev was left for building operations. The truth was that, with channels for investment opened up recently, building speculations offered no attraction. In addition to that, people who had saved a

few hundred pounds held on to the money in preference to building houses for their own use, in the hope that the cost of building would decline. A third cause was the fact that, with the investments offered bv commercial concerns people with money wore slow to advance on mortgage.