XN000022-1975-07-16 — Page 7

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WEDNESDAY, JULY 16, 1975

SPEEDING UP NEW HOUSING CONSTRUCTION IN

THE PRIVATE SECTOR

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PART 1 OF THE LANDLORD AND TENANT ORDINANCE RENT AND TENURE CONTROLS DO NOT APPLY TO NEW BUILDINGS FOR WHICH OCCUPATION PERMITS WERE ISSUED AFTER DECEMBER 14, 1973.

HOWEVER, THIS LEGISLATION IS DUE TO EXPIRE ON DECEMBER 14, 1976 AND NO DECISION CAN BE TAKEN AT THIS EARLY STAGE ON WHETHER TO RENEW IT BEYOND THAT DATE. THUS DEVELOPERS HAVE NO WAY OF KNOWING WHETHER (WHEN THE PRESENT THREE-YEAR +HOLIDAY+ FOR NEW HOUSING LAPSES) THEIR NEW BUILDINGS WILL BE CONTROLLED AFTER THAT DATE.

THIS LACK OF CERTAINTY IS SAID TO BE INHIBITING NEW INVESTMENT IN HOUSING, AT A TIME WHEN DEVELOPERS SHOULD BE EXPANDING RATHER THAN CONTRACTING PRODUCTION.

THERE HAS BEEN A SHARP DROP IN THE LAST 18 MONTHS IN THE NUMBER OF BUILDING PLANS SUBMITTED BY PRIVATE DEVELOPERS FOR THE BUILDINGS ORDINANCE OFFICE'S APPROVAL- AND THIS WILL HAVE A MARKED EFFECT ON THE NUMBER OF NEW FLATS EXPECTED TO BE COMPLETED IN THE FUTURE.

THIS IS SHOWN UP BY THE ACTUAL COMPLETION FIGURES FOR THE METROPOLITAN AREA FOR EACH OF THE LAST FEW YEARS, COMPARED WITH FORECAST FLAT COMPLETIONS FOR THE NEXT FEW YEARS :-

PAST PERFORMANCE

FORECAST PRODUCTION

1972/73

23,700 FLATS

1975/76

13,000 FLATS

1973/74

21,300 FLATS

1976/77

12,000 FLATS

1974/75

19,100 FLATS

1977/78

11,500 FLATS

:

REDUCED INVESTMENT IN PRIVATE SECTOR HOUSING CAN ONLY ADD TO THE HOUSING SHORTAGE, FOR THERE IS AN ABSOLUTE DEMAND FOR HOUSING WHICH, IN THE SHORT TERM, CANNOT BE PROVIDED BY THE GOVERNMENT.

*

ANY SLOWING-DOWN NOW WILL RESULT IN A LOSS OF NEW ACCOMMODATION OVER THE NEXT YEAR OR SO, A LOSS WHICH IT IS UNLIKELY CAN BE MADE UP LATER WITHIN THE 10-YEAR HOUSING PROGRAMME. THIS WILL INEVITABLY BRING ABOUT A SHARP RISE IN SELLING PRICES AND RENTS FOR NEW FLATS.

IN ADDITION, THIS CURRENT LACK OF PRIVATE-SECTOR ACTIVITY REDUCES EMPLOYMENT OPPORTUNITIES IN THE CONSTRUCTION INDUSTRY AT A TIME WHEN THERE IS AN URGENT NEED FOR MORE JOBS.

/AGAINST THIS .............

L