THE FAIR RENT QUESTION.

Poverty Bay Herald, Volume XLVII, Issue 15465, 9 March 1921, Page 6

THE FAIR RENT QUESTION.

J The third case under the Hmwir.g Act Amendment Act between Thus. O. Fahey (Mr. Buinard) and James Dow (Mr. Finn) was continued in the Magistrate’s Court this afternoon. Mr. Finn, for defendant, submitted that before any application to increase the rent could ho entertained it was first necessary to ascertain the standard rents as prescribed by various Housing Acts and amendments in force. After reviewing the lcg : §lation, he submitted that the standard rent in this case was 12s 6d, ancjl that j this rent was snfhcient to provide the owner with a 7 per cent, return on the true capital value of the premises: He submitted that a Government valuation was the basis upon which tjio calculation should be made, and that valuation was £345. ■ Mr. Burnard submitted that the value of the premises must be asccrta ned bythe balance of testimony in the ordinary way. Taking the average 1914 ai d 1921 Government valuations, and (he evidence of Mr. Picsse, the teasonable value of the premises as against 1914 was from. £SOO to £550. Allowing for depreciation and repairs’ a sum of £6O to £65 per annum was required hi order to give the tenant a 7 per cent, net return. Decision was reserved.