3
Wednesday, June 6, 1973
However, promises newly completed when the Bill takes effect
will be excluded from controls for a period of three years. This is
to encourage new developers to obtain a reasonable return on their
investment.
The rent control formula will be so designed as to enable it
to be extended beyond the three year period, if necessary.
A three-man independent rent tribunal will be set up to review
upon application by either a tenant or landlord any increase determined
by the Commissioner of Rating and Valuation.
It is envisaged that the first rent, following the legislation,
of premises not previously let (such as recently completed vacant premises and owner-occupied premises) would not be restrained in any way, but
increases thereafter would be controlled.
In the case of a fresh letting of existing premises previously let,
the rent would not be allowed to exceed the fair market rent as assessed
by the Commissioner of Rating and Valuation.
No increases in rent, except by agreement, would exceed 10 per
cent per annum, and this would be subject to an assessment by the Commissioner.
Under the proposed measures, a landlord seeking an increase in rent
would have to apply to the Commissioner, who would make an assessment of the fair market rent which would be on the lines of an up-to-date rateable' value:
The increase permitted would then be calculated by dividing the
difference between the existing rent, exclusive of rates, by a factor of "5", subject to a maximum increase of 10 per cent per annum (or 21 per cent over two years).
/The following