RENTS OF HOUSES

New Zealand Herald, Volume LXXVII, Issue 23620, 2 April 1940, Page 8

RENTS OF HOUSES

MANY ACSREEMENTS MADE It is nearly four years since the Fair Rents Act was passed "to make temporary provision for the restriction of increases in' rent of certain classes of dwellinghouses," and experienco in Auckland is that the number of new agreements made under the legislation shows 110 decline. This is attributed to a limited extent only to the enlargement of the scope of'the original legislation. Most agreements fixing rentals are renewed after 12 months where the tenancy remains in existence, formal renewal being necessary if the rent is not to revert to the basic rate ruling at the time of the passing of the legislation. According to land agents many of the first batch of agreements under the Act subsequently lapsed through failure to renew, but most parties to agreements now understand the procedure. It is apparent that some thousands of houses in Auckland subject to agreements carry • rentals above those that ruled ' when the legislation became operative. This situation, it is pointed out, is not anomalous. The Act was passed to prevent exploitation of tenants possible through a shortage of houses, and not to prevent a fair return to landlords, many of whom had accepted low rents from the time they reduced them in the depression period.