HOUSES FOR SALE LEFT EMPTY

Southland Times, Issue 23406, 13 January 1938, Page 4

HOUSES FOR SALE LEFT EMPTY

Increased Number In Auckland RECENT AMENDMENT TO RENTS ACT BLAMED (Special to The Times) AUCKLAND, January 12. Judging by the number of buildings for which tenders are being called or will be sought in the near future, a considerable amount of the construction work xfcill take place in Auckland during the first six months of 1938. Work will be started on at least five big commercial buildings within the next six weeks, and plans are being prepared or are completed for several other structures, a number of which are of large dimensions. New post offices at Devonport, Grey Lynn and Avondale are included among the buildings to be erected at an early date. The number of dwelling houses held empty while on the market for sale is stated by land agents to be steadily increasing. The attitude of the owners in not seeking tenants in such circumstances is said to be 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 for the tenant. Another feature of the situation is that the number of claims for possession by owners from tenants under the Act is steadily increasing. They now comprise quite a substantial proportion of the 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 in s clined 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 REPORTED Many sales of house property are taking place, purchasers in some instances acquiring the freehold of dwellings because they are unable to rent a suitable house. Many of the purchasers are recent arrivals, there being clear evidence of the drift of population to Auckland in the housing situation. 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 the 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 the exact costs. Where houses are constructed on such approved plans the corporation will show greater liberality in its advances.