HOUSE SHORTAGE IN PALMERSTON NORTH

Dominion, Volume 30, Issue 10, 7 October 1936, Page 5

HOUSE SHORTAGE IN PALMERSTON NORTH

Accentuated by New Law

HOME BUILDERS INQUIRING FOR ADVANCES

Dominion Special Service.

Palmerston North, October 6.

For two years, at least, Palmerston North has had a definite house shortage, accentuated in the past six months by new building failing to keep pace with the demand for houses. Although there has been a fair amount of building of houses, it has not caught up with .the need for dwellings.

A leading estate agent interested in housing complained that the Government’s rents legislation had retarded building progress in Palmerston North. Many who were prepared to build houses for letting as an investment were frightened by the legislation, and still felt so uncertain of their position as to be dubious about a class of investment on which they would otherwise have embarked. Houses Wanted at Low Deposit. "You can’t get a house for love nor money; I could let 50 if they were available,” said another agent. On the other hand, there was a fair demand for houses to purchase from persons with £lOO to £l5O to deposit, but the average owner desiring to sell would not do so unless the deposit were at least £2OO. There were good average types of homes available at prices about £B5O-£9OO. It certainly ■seemed that the Government’s housing plan would knock the bottom out of the selling business. An important point to be remembered in the State housing scheme, if it were to support itself, was that the average good life of a house not built in brick or concrete was 25 years, with maintenance costs getting higher, as the building passed the 10 and 15-year marks. . The Palmerston North City Council is not going to do anything in response to the Government’s invitation to local bodies to undertake municipal building schemes. It raised £20,000 21 years ago to erect 21 houses costing £7OO to £lOOO for letting to employees and others. The enterprise showed a decided loss, and part of the money raised is still not repaid- ' • The State Advances Corporation agents, Messrs. Bagnall and Keeble, reported continual applications for building loans by men with some equity to put into a property. Those applicatons were going through the department without delay. There had been a few inquiries about houses to be erected tinder tiie new State scheme, but nothing definite had been announced as to when the scheme would operate in Palmerston North, and who 'would control it, they said. Under the advances scheme a roster was kept of all persons wanting houses, and, no doubt, those unable through insufficiency of capital to participate in that would receive first opportunities under the letting project. Farm Property. Discussing farm property, a land agent said there was a good demand, but he could not get enough farms on his books. Those that were for sale required a considerable deposit—at least a third. Either some farmers were expecting better times or, if they , wanted to quit,’did not do so because they would not get anything better to do. A good many were retaining their properties, fully expecting that under the mortgage legislation such liabilities as second mortgages would be halved. He thought this was anticipating too much.