Rent ‘explosion’ feared when freeze lifted

Press, 9 February 1983, Page 6

Rent ‘explosion’ feared when freeze lifted

Landlords and tenants in Christchurch are concerned that rents will rocket when the freeze is lifted in June. The Tenants’ Protection Association is gearing itself for a time of peak activity during the "thaw.” It predicts that it will receive as many as 80 cases a week as landlords adjust their rents and attempt to recoup the money lost during the 12month freeze. The association’s chairman; Mr Andrew Alston, said that unless further restric-

tions were imposed the effect of the rent freeze on tenants would be counterproductive. “A lot of people, having lived for a year on depressed wages and being suddenly faced with substantial increases in rents and other costs, will be worse off than ever before." Landlords' should be limited to one rent increase in six months and the size of it should be restricted unless [ the landlord could prove

hardship, he said

In that case, and with the approval of the Rent Appeal Board, a greater increase might be allowed.

The president of the Christchurch Landlords’ Association, Mr A. J. Roberts, said that increases of 30 or 40 per cent were likely. Rents, traditionally about 35 per cent of the average pay, had been allowed to slip behind the rate of inflation in recent years, he said. They had • begun to creep up to between 30 per cent and 32 per cent before the freeze was imposed but had since slipped back to 27 per cent. Mr Roberts said that he would not object to some form of continuing restraint if price increases were also limited, but if the open market was to rule, landlords should not be unfairly discriminated against. "I don’t see why landlords should be controlled more than any other section of the

community,” he said

Some rents had not been reviewed for 12 to 15 months before the freeze was imposed and were now only half what they should be. he said. There would be a lot. of “catching up" to do when it was lifter!. However, those rents which were “farly up to date” when the freeze was introduced would probably be increased by only 10 to 15 per cent, he said. During the freeze some had lost money on their properties, especially as the Government had allowed the interest rates on mortgages to reach 18 per cent. One landlord, who preferred not to be named, said that rents would "explode" when the freeze was lifted.

“It frightens me. Tenants who have had it cheap will get rent increases that they have never had before because the landlord nas oeen warned that it is not safe to let them lag,” he said.