BACK ON ITS HANDS

Sun (Auckland), Volume III, Issue 892, 8 February 1930, Page 1

BACK ON ITS HANDS

GOVERNMENT HAS 100 HOUSES IN CITY RESULT OF LOANS The Government has more than 100 houses in Auckland back on its hands after leans have been granted through the State Advances Department. They are scattered over the city and every suburb, from Takapuna tc( Otahuhu and Manurewa. In the opinion of a city valuer the whole trouble with the department is that money has been lent by the Government in excess of the value of the sections and In a number of instances the loan has been in excess of the value of the house and land combined. He suggests that the whole situation should be investigated by a board of inquiry to see where the discrepancies have occurred and the Government loans be stopped for a term until the present situation rights itself. There Is a suggestion tn some quarters that too much money has been loaned on some of the sections to people who have applied for State aid. Rents in Auckland are down by 15 per cent, or more, said a city land agent this morning. He considers that, one of the principal causes of this is cheap Government money. STATEMENT DISCOUNTED The statement that there are 1.400 empty houses in Auckland is discounted in all quarters, particularly by land agents. One city man today pointed out that it is practically impossible to obtain the exact number. Most of the good houses to let are given over to several of Ihe agents and in tfie supposed estimates these have all been counted separately. He also explained that it was practically impossible to let many of the houses. People nowadays desired houses with modern conveniences. They also wanted them near tram and bus routes. In some parts of the city there were many houses to let, but in his opinion they would practically all remain empty so long as there were more up-to-date houses on the market. There is no great difficulty in letting good houses in good localities. It was reported recently that no more loans under the State Advances Department would be available for Auckland, but this was contradicted later by the Prime Minister, the Right Hon. Sir J. G. Ward.

The situation is apparently worse in Auckland than in other centres, and the department desires to sell the houses already on its hands before any further money is advanced.