RENT REDUCTION LAW

Waipukurau Press, Volume XXVIII, Issue 118, 13 May 1932, Page 5

RENT REDUCTION LAW

SOME ANOMALOUS EFFECTS “ALL PARTIES EXASPERATED” The effects of the rent-reduction legislation are sometimes far different from those intended by the Government. An Auckland business man who has large property interests, after remarking that conditions vary in every district, and every city and town, said “I will give you a concrete instance. A lease was taken three years ago ■:nd the lessee is willing and anxious to obtain an extension at the same rental. The rent, however, will be forced, down but the owner who has a mortgage, will only receive back by interest, reduction about, a quarter of what he will lose owing to the reduction of rent. All parties will be exasperated. The lessee will not get his renwal, and tho owner o fthc freehold will not get his renewal of tho mortgage. “This illustrates that the attempt to frame legislation of general application is impracticable and will lead to endless trouble and litigation. ’ ’

The same authority gave a second illustration of the working of the. Act. A and B, he said, rented houses next door to each other. The dwellings were identical in every way, and, the rent three years ago was 35s for each house and on making representations A was granted a reduction of 5s a week which was being paid on January 1, 1930. B did not obtain concession. Under the new law Ar. rec.-hes of 20 per cent o'- his making his rent 245, while B pan fenly obtain a reduction of 20 per 6en% bn the rate he was paying on_January 1, .1930 and will bo obliged, Jr .&e' f ieanains in the house to pay 28s a week as compared to his nei ghbour ArfFi" ■ : G