Few rented flats?

Press, 30 December 1980, Page 4

Few rented flats?

Rental accommodation in Christchurch might become extremely short over the next .year, according to the Christchurch Landlords’ Association. . ' ■ •

“There is. not a real shortage at the moment, but it is fairly tight and might become .fairly critical in the next 12 months;'’ said-Mr A. Roberts, vice-president of the association,, last evening. No new ’rental accommodation was being built and’ old houses divided into flats were being reconverted and restored, especially those near the central city.

Canterbury University had advertised for rental accommodation before Christmas for the first time in years, Mr Roberts said.

"But anybody looking for a flat in Christchurch at the moment can : find what they want if they like' to get cracking,” he said. Landlords who had bought blocks of flats in the last few years and who were paying 15 to 16 per cent interest on loans had to get a return of 20 per cent or more to break even after paying rates and insurance.

These landlords hoped tomake a capital gain by selling their properties when the market picked up. •' People would hold on to their flats in the meantime because it. was often not profitable to sell their places at present, Mr Roberts, said. There had been very little increase in property values in Christchurch in the last two or three years, and although values were starting to move now they had a long way to go before they caught up on the cost of a new property.