LAST CONTROL RETAINED

Press, Volume CIII, Issue 30542, 10 September 1964, Page 3

LAST CONTROL RETAINED

(Parliamentary Reporter) WELLINGTON September 9. Under the Tenancy Amendment (No. 2) Bill introduced in Parliament yesterday the Government proposes to postpone for three years the removal of the last remaining major tenancy controls—on business premises. Under existing law, passed in 1961, these premises were to have been freed from rent restriction after November 18.

Tenants whose leases have expired, whose leases will expire before November 19, or are subject to no more than a year’s notice, and tenants who have not negotiated new leases with their landlords, will gain protection from the latest legislation. Before November 19, they must notify their landlords of a wish to obtain a new tenancy. Within two months of receiving notice, the landlord must reply in writing, outlining the terms on which he is prepared to grant a new tenancy or the grounds on which he objects to the grant of a new tenancy. Should the landlord fail to reply, the property will remain subject to the longstanding controls of the Tenancy Act until November 18, 1967. If unsatisfied by the landlord’s reply, the tenant may within a month apply to the Magistrate’s Court for an order granting a new lease, the term of which may not extend beyond November 18, 1967. Rent Basis Rent will be determined on full market, or willing les-sor-willing lessee value. But it may not include any goodwill component traceable to the particular tenant, those who have come before him or his or their particular types of business. The Court is to grant a new

tenancy unless the landlord opposes it on specified grounds. These include failure to pay rent, or late payment of rent, failure to meet conditions of a tenancy, failure to take reasonable care of premises, conduct creating a nuisance or annoyance to nearby occupiers' and the availability of suitable alternative accommodation. New Grounds New grounds added in the bill include “a firm and settled intention” by the landlord to occupy the premises himself, to demolish or reconstruct them within a year or to carry out major alteration, for which he reasonably requires possession.

Interim protection is afforded tenants who give notice to their landlords under the legislation. Within 14 days of a Court decision, tenants may decline to accept the new tenancy. If they do they will have two months to quit, at which time they will lose interim protection, and they may be required to pay Court costs. Apart from this, the Magistrate’s Court will have a general power to award costs to whichever party has been most inconvenienced. There will be a right of appeal to the Supreme Court if an order to grant a new tenancy has been refused or if an order made involves yearly rent of more than £lO5O. It will not be possible

to appeal against or have quashed any other decisions, except on grounds of lack of jurisdiction. £5OO Penalty Where an order has been refused, and it subsequently seems that misrepresentation or concealment of facts induced the refusal, the Court may order the landlord to pay compensation to the tenant. Landlords who falsely plead that they intend to occupy premises themselves or to demolish them, will thus not only commit an offence under the act, carrying a penalty of up to £2OO for individuals and £5OO for companies, but will also be liable for general and special damages. Even if the tenant cannot prove actual loss or damage he • may be entitled to compensation of up to £250. The bill covers subletting. Intermediate landlords must forward notices received from tenants to the ultimate landlord. Head landlords may also require subtenants to give notice directly. Intermediate landlords may be joined as parties in the hearing of applications. Exemptions Property affected by the bill includes business and commercial buildings and land, but not licensed, hotels, agricultural properties or parking garages. The measure makes no reference to dwellings. After November 18 this year a 30s weekly rent rise limit imposed in 1961 on dwellings covered by tenancy law will still, therefore, expire. Legislation in 1961 exempted all new tenants after November 18, 1961, from tenancy control, whether on dwellings or on business premises.