FAIR RENTS ACT

Press, Volume LXXII, Issue 21811, 17 June 1936, Page 12

FAIR RENTS ACT

Hon. H. T. Armstrong’s Summary PROVISIONS EXPLAINED The Fair Rents Act. 1936, is ex-, plained by the Minister for Labour (the Hon. H. T. Armstrong), in the third of hss statements on recent legislation. He slates that the main purpose of the act is to make temporary provision ‘until September 30, 1937) for restricting increases in the rent of dwellinghouses that are let at a rental not exceeding £156 per annum. The act • which binds the Crown) does net apply to any dwelling first let after the passing of the legislation, or to blocks of residential flats. Preventing increases—Section 5 prevents any increase in a tenant’s rent during the tenancy, except where a lair rent is determined in accordance with the provisions of the act. This section is made retrospective to May 1. 1936. Determining Rent The lair rent—Section 6 and 7 enable a magistrate to determine a fair rent lor any dwelling-house, on the application of either the landlord or the tenant. In the absence of regulations to the contrary, the fair rent is to be tuch rent as in the opinion of the magistrate it is fair and equitable for tne particular tenant to pay, having regard to any hardship likely to be inflicted on the tenant or the landlord and to all other relevant considerations. The fair rent is not to be higher than the rent paid by the tenant on November 27, 1935 (the date of the last general election >. or any lower rent that has been payable since that date, unless the landlord proves that that rent is, in the circumstances, too low.

Regulations may be made under Section 24 of the act providing for the fixing of the fair rent at an amount equal to a percentage of the capital value of the dwelling-house (not less than 4 per cent., nor more than 6 per cent, per annum) together with the outgoings for rates, insurance, and repairs. and the amounts (if any) to be allowed for depreciation and as rent of furniture. Such regulations may apply generally or in respect of specified parts cf New Zealand or specified classes of dwelling-houses. The fair rent may be altered from time to time, and only applies so long as the tenancy lasts. A hew fair rent may be determined for any subsequent tenancy Excess Payments Refund of Excess Rent —Sub-section *5) of Section 6 empowers the court to order a refund of what it considers to be excessive rent paid during the six months immediately before a fair rent is determined. Right of Recovery-Section 9 declares any rent in excess of the fair rent to be irrecoverable; and Section 10 enables a tenant to recover (or deduct from future rent) any rent that he ha.-, paid in excess that payable under the act. Premium* for Letting—Section 11 prohibits th_ charging of fines or premiums lor letting houses to which the act applies. Obtaining Possession—Sections 12 to 15 relate to the obtaining of possession of dwelling houses by landlords. Section 12 requires 14 days’ notice to be given to the tenant before proceedings for possession are commenced. Section 13 sets out the only grounds on which possession of a dwelling house may be obtained, and authorises the court U> refuse an order for possession where :t is not satisfied that the landlord would suffer greater hardship from the refusal of an order than the tenant would "uffer by reason of the grant of an order. Section 14 gives the court discretionary power to suspend any such proceedings for as long as it thinks fit. with or without imposing conditions. Section 15 is intended to prevent evasions of Section 13. Landlord’s Rights Restricted Right to Distrain—Section 16 restricts the right of the landlords to distrain for rent. Section 17 empowers an inspector of factories to act on behalf of any tenant in proceedings under the act. Costs and Court Jurisdiction—Sections 18 to 20 deal with procedure, costs, and the jurisdiction of the court. There are to be r orders tor the payment of costs except in special case?, and no appeals are to be made from any decisions under the act.

Preventing Intimidation—By Section 21 tenants are debarred from contracting. out of the benefits of the act except where any agreer-ent between a landlord and tenant as to the fair rent to be paid has been approved fay an inspector of factories, and Section 22 makes it an offence to intimidate a tenant with a view to preventing him from taking action under the act. Fine for Offences—Section 23 prescribes a fine not exceeding £SO for offences against the ac ; and Section 24 provides for the making of regulations. Duration Defined—Section 25 limits the duration of the act to September 20. 1937