Some Wellington Shop Rents Doubled

Press, Volume CIV, Issue 30741, 4 May 1965, Page 20

Some Wellington Shop Rents Doubled

“The Press” Special Service

WELLINGTON, May 3. Rents of some shops in Wellington have increased by between 50 per cent, and 100 per cent since the law affecting them changed in November. The appearance of “To Let” notices in some shop windows and the change of occupancy of others are results of this. The old law restricted rents so that the landlord received 5 per cent net of the value of hij property a year, but some properties were not controlled, so the rents of these usually found a level fixed by supply and demand. The new law allows the landlord to charge a rent that is comparable with the rent already being paid for similar tenancies that were already not controlled. Speaking on behalf of the New Zealand Institute of Valuers. Mr R. Rolle said it had been found that the difference between the rents that used to be controlled and the rents that could now be charged for the same tenancies was around 50 per cent, but in some cases was as high as 100 per cent. He recalled that he had predicted in November that some shopkeepers who had carried on under the old restricted rents for many years would find their businesses unprofitable and would have to close down or shift to less expensive stands. That was what had been happening, and because the market had not settled down some shops were still empty. He said he knew of a shop-

keeper whose rent of £BOO a year had been doubled. The shopkeeper had refused to pay that figure and had shifted. The landlord had subsequently obtained £2OO a year more than he had been asking.