HOUSE RENTALS

New Zealand Times, Volume XLVI, Issue 10606, 3 June 1920, Page 5

HOUSE RENTALS

AN IMPORTANT POINT. One reason for the hesitation of builders and others in erecting houses for letting purposes is said to have been the impression that the Rent Restriction law limits ail rentals to 8 per centum of the capital value. It nas, in fact, been stated that by this result the law has tended to defeat its own object. On reference to the War Legislation Acts we find that the 8 per centum provision docs not apply to now houses. The effect of the law is as follows; — (1) Where the rent charges for a dwelling let before August 3rd, 1314, was less than 8 per centum of its capital value, it may be increased by’ the landlord, but not to an amount exceeding 8 per centum. If the l rent already exceeded 8 per centum this rent may be maintained but cannot bo increased; that is the ‘standard” rent; but (2) in the case of a dwelling let for the first time on or subscqquently to August 3rd, 1914, the 8 per centum of the capital value docs not apply and the only restriction is that the rent at which it was first let, whatever its proportion to the capital value, maj not bo increased.