RENT RESTRICTION.

Manawatu Herald, Volume XLVI, Issue 2763, 26 July 1924, Page 3

RENT RESTRICTION.

PROVISION AGATNST INFLATED VALUES. Wellington, Last Night. The Real Restriction Bill which was circulated in the early hours of this morning, and which proposes to extend the duration of the law relating to the restriction of vent from 31st July, 1924, until 33st August, 1925, was discussed in the House to-day. The Hon. IV. Anderson, who moved the second reading of the Bill, read an explanation of the measure. which said the present Act provided that where landlords and tenants had agreed upon the capital value of the house, the Magistrate had no jurisdiction to fix the capital value since a ruling by the Chief Justice, making this point clear. He had been informed that it had become the practice of owners and agents to''require prospective tenants before being given possession, to sign agreements, at a sufficient high capital value either to take the house outside the Act altogether, or entitle the owner to an unduly high rental. When the tenant signed an agreement as to the capital value, he might not, know the effect of it. Clause 3 of the Bill would give jurisdiction to fix the capital value, whether an agreement had been entered into or not.

Under the present Act, the standard rent of a house let on or before August 3, 1914, could he fixed in three ways, whichever gave the landlord the greatest return. These ways were (a) the actual rent paid in 1914; (b) eight per cent, gross on capital value in 1914; (c) seven per cent, net on that capital value. Clauses 4 and 5 of the Bill would meet this difficulty. Mr Wilford said he considered it the duty of the Liberals to support (he Bill. Labour members expressed pleasure and thanks that the Bill had been brought down. During the committee stage of the Bill Mr P. Fraser said he did not wish to do jiuvthing that would de-la.V-.the Bill’s becoming law but he considered the former clauses dealing with hardship should be put into the Bill. This would protect the owner against hardship through not getting his house and protect the tenant against eviction. He. thought also that provision should he made to prevent people with children being refused houses. ’flic Minister said he would consult the leader of the Legislative Council as to what could he done. The. Bill was passed.