WEEKLY RENTALS

Dominion, Volume 25, Issue 168, 12 April 1932, Page 10

WEEKLY RENTALS

Intention of Legislation reduction necessary The effect on weekly house tenancies of the rent reduction proposals contained in the National Expenditure Adjustment Bill was the subject of a question to the Prime Minister, Rt. Hon. G. W. Forbes, yesterday. The following statement on the position was made by Mr. Forbes: —“The Bill provides for the reduction of all rents, whether payable under a written lease, or agreement for lease, or a monthly, weekly, or other tenancy by word of mouth. If a particular tenancy was in existence on January 1,1930, the 20 per cent, reduction is made from the rent payable as at that date. In the case of a tenancy which has commenced since January 1, 1930, the 20 per cent, reduction is made from the rate payable bn March 31, 1932, but if the rent has been varied since the beginning of the tenancy the reduction is made from the original rate.” The possibility of a landlord terminating a tenancy in view of the reduction enforcement and letting the premises to another tenant at the present rental, was mentioned to the Prime Minister. “Of course, there is nothing in the Bill to prevent that,” he replied, “but in view of the economic situation. I should think it most unlikely that such a course would be followed. The Bill certainly provides that a reduction of 20 per cent, must be made. “Provision is made for an aggrieved landlord to appeal for relief on several grounds, and it then remains for the court to decide the. fair rental value of the premises. It must also be remembered that there is the safeguard that the rent cannot be reduced below 7 per cent, of the capital value, and that previous concessions in the amount of rent are to be taken into consideration.” Mr. Forbes made it clear that, whatever subsequent relief jnight be given to landlords on appeal to a court, they were definitely obliged to reduce their rents, no matter on what basis, after the Bill had been passed.