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Wednesday, October 31, 1973

Mr. Lightbody emphasized however that this gave no grounds for

a distress call by landlords.

"The rents being paid for these previously exempt but currently frozen tenancies when they come under regulation will have been negotiated

privately between landlord and tenant," he said.

He explained that premises with a rateable value of over $150,000 numbering about 4,000 at present were now brought under control because

their rents had "in many cases been pushed up to exorbitant levels, levels

far beyond what any reasonable, or even unreasonable, landlord could expect.

"Bxcessively high rent levels are established which act as an

irritant throughout the whole domestic housing sector," he added.

He said the landlords again should have no complaints because the flats would have come into the regulation system at more or less open market rents and they too could seek rent increases provided the present

rents were below the fair market rent.

The new Bill also regulates existing tenancies which are the

subject of fixed-term agreements because "we find the tenant, when the

agreement expires, caught in a trap; he has been paying a market rent

for his flat but is now exposed to demand for sudden and substantial increase,

Mr. Lightbody said.

He recognised that it was a serious step to overrule such agreements which were a useful mechanise to enable landlords and tenants to agree

on rents and tenure on their own.

/He added

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