RENT RESTRICTIONS

Southland Times, Issue 18842, 7 June 1920, Page 6

RENT RESTRICTIONS

EFFECT ON NEW HOUSES. One reason for the hesitation of builders and others in erecting houses for letting purposes has been the impression that the Rent Restriction Law limits all rentals to eight per centum of the capital value. It has in fact been stated that by this result the law has tended to defeat its own object. Enquiries with reference to the War Legislation Acts elicited the opinion that the eight per centum provision does not apply jo new houses. The effect of the law was slated to be as follows:—(1) Where the rent charged for a dwelling let before Aug. 3, 101-1, was less than eight per centum of its capital value, it may he increased by the landlord but not to an amount exceeding eight per centum. If the rent already exceeded eight per centum this rent may be maintained but cannot be increased ; that is the “standard” rent but (2) in the case of a dwelling let for the first .time on or subsequently to August 3, J914, the e : ght per centum of the capital value docs not apply and (he only restriction is (hat the rent at which it was first let. whatever its proportion to the capital value, may not be increased.