EMPTY HOUSES

New Zealand Herald, Volume LXXV, Issue 22935, 13 January 1938, Page 12

EMPTY HOUSES

ATTITUDE OF OWNEKS TENANTS NOT WANTED EFFECT OF LEGISLATION - SPECULATIVE BUILDING The number of houses held empty while on the market for sale is stated by land agents to be steadily increasing. The attitude of owners in not seeking tenants in such circumstances is said to bo directly due to the recent amendment to the Fair Rents Act, which provides that before possession can be taken a suitable house must be available to the tenant, A count of 46 empty houses offered for sale in one issue of the Herald suggests that the trend is becoming a fairly important factor in contributing to the house shortage, reliably described as more acute than ever. Claims lor Possession Another feature of the situation is that the number of claims for possession by owners against tenants under the Act is steadily increasing. They now comprise quite a substantial proportion of applications brought before the Court under the legislation. Since the amendment to the legislation tenants in many instances are placing the onus on the landlord to provide suitable alternative accommodation when he asks for possession, and in some instances, in the opinion of land agents, are inclined to adopt an unreasonable attitude. Until the attitude of the Courts on the questions involved is more definite it is expected that there will be a fair amount of litigation. Many sales of house property are taking place, the purchasers in some instances acquiring the freehold of dwellings because they are unable to rent a suitable house. A large number of purchasers are recent arrivals, there being clear evidence of the drift of population to Auckland in the housing situation. , " State Advances Loans Houses constructed for sale by builders are described as selling easily and profitably, but the number of these is limited by the financial resources of builders. With the disappearance from the market of second mortgage money there is a distinct check on speculative building, although the situation has been eased somewhat by the State Advances Corporation, which recently has been lending money on first mortgage up to 80 per cent of the value. So far the corporation has not made advances up to 90 per cent of the value of new houses, as was promised by the Government some time ago. It is believed, however, that a scheme is being prepared by the Government under which it is having plans of various types of houses prepared and on which it can estimate exact costs. Where houses are constructed on such approved plans, the corporation will show a greater liberality in its advances.