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year from 1938 to 1950. Cost of sections is not included in these figures, and it can be taken that, except for the year 1946, the figures are in respect of an actual house comparable in all respects and erected in the same locality each year. £ | £ 1938 .. .. .. 983 | 1945 .. .. .. 1,452 1939.. ... .. 993 1946*.. .. 1,585 1940 .. .. .. 1,051 1947 .. .. .. 1,567 1941 .. .. .. 1,182 1948 .. .. .. 1,660 1942 .. .. ..1,172 1949 .. .. .. 1,798 1943 .. .. .. 1,350 1950 .. .. .. 1,829 1944 .. .. .. 1,419 * It was not possible to get an exactly comparable house for 1946, and the figure quoted above relates to a house with a slightly higher floor area but otherwise comparable with houses erected in other years. (c) Rentals of New State Houses.—On several occasions in previous years the Board has drawn attention in its report to increasing losses being incurred in the letting of houses at the then current rental charges. The scale of rentals was fixed when the scheme was first instituted and had not been varied, despite the very substantial increases in building costs in the intervening years. The table shown in the preceding paragraph supplies the background for the Board's comments regarding the increasing loss ratio in respect of new State rental houses. After considering the position of the Housing Account in the light of reports supplied by the Board, the present Government decided that rents of all houses let for the first time or relet after Ist April, 1950, would be increased in proportion to the accommodation provided. The quantum of increase ranged from ss. per week for the smaller units to 15s. per week for the multi-bedroom house. The increases are by no means heavy having regard to costs involved, and the new rentals are well within rentals allowable under the Tenancy Act. It should be emphasized, however, that these increases apply only to houses let or relet after Ist April, 1950, so that tenancies created on or before 31st March, 1950, will continue to enure at former rentals. It should be said also that the increases do not apply in the case of pensioner flats. The effect these increases will have on the Housing Account is traversed later herein. (d) Old Rental Houses. —This reference covers those houses erected prior to 1935 and those acquired since for letting purposes. The number under administration at 31st March, 1950, was 1,961. (e) Transit Housing.—This continues to serve a useful purpose as an ancillary to the main housing scheme, and the need for this type of temporary accommodation is still very real. Allocation Committees have continued to allot houses to the occupants as opportunity offers, and every endeavour is made to ensure that residence in the transit accommodation is not unnecessarily prolonged. The Committees' activities in this regard are, however, governed by the rate of delivery of new houses. (/) Allocation of Houses to Ex-servicemen.—There has been no change in the basis of allocation to ex-servicemen, who continue to obtain a minimum of 50 per cent, of all available units. (g) Sale of State Houses.—The Government has announced its intention to give tenants of State houses the opportunity of purchasing their houses if they so desire. It is apparent that the proposal has aroused considerable interest among the tenants, and the indications are that a considerable number of sales will be effected, with a corresponding reduction in the annual loss in revenue. The necessary inspections and reports will place a further heavy burden on our urban field staff, but the work will be dovetailed in with the other field activities as much as possible.

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