XN000022-1975-11-07 — Page 3

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FRIDAY, NOVEMBER 7, 1975

FOR EXAMPLE, A TYPICAL DOMESTIC TENEMENT FLOOR MIGHT HAVE A PERMITTED RENT OF $70 PER MONTH BUT THE AVERAGE RENT KNOWN TO BE PASSING FOR SUCH PREMISES IS $114 PER MONTH: THUS THE PROPOSED INCREASE OF ABOUT $22.50 PER MONTH IS LESS THAN 20 PER CENT, WHICH, IN PERCENTAGE TERMS, IS IN KEEPING WITH THE STANDARD INCREASE ALLOWED FOR POST-WAR PROTECTED TENANCIES. IN MONEY TERMS, THE AMOUNT OF INCREASE

IS CONSIDERABLY SMALLER. AS FOR NON-DOMESTIC PREMISES, IF CURRENT RENTS ARE EQUAL TO OR EXCEED THE NEW PERMITTED RENTS

REASE WILL BE PAYABLE.

TO ASSIST LANDLORDS AND TENANTS, THE BILL EXTENDS THE POWER OF THE COMMISSIONER OF RATING AND VALUATION TO ASSESS STANDARD RENT, AND LAYS DOWN THE PROCEDURES FOR GIVING EFFECT TO THE PROPOSED INCREASES.

THE BILL ALSO PROVIDES FOR A NUMBER OF AMENDMENTS IN RESPECT OF THE CONTROLS RELATING TO POST-WAR DOMESTIC PREMISES.

THE FIRST AMENDMENT PROPOSED IS TO REMOVE PROTECTION FROM FRESH LEASES FOR THREE YEARS OR MORE (AND LEASES FOR SHORTER TERMS IN CERTAIN SPECIFIED CIRCUMSTANCES) ENTERED INTO AFTER DECEMBER 31, 1975. THIS EXCLUSION WILL AFFECT ONLY NEW LETTINGS, NOT EXISTING LEASES WHICH GENERALLY CONTINUE TO BE PROTECTED.

IN ADDITION, HOWEVER, PROTECTION IS TO BE WITHDRAWN FROM ALL LETTINGS HELD IN THE NAMES OF GOVERNMENTS, CORPORATIONS AND COMPANIES, AMONG OTHERS.

THE SPOKESMAN SAID THAT ALTHOUGH THIS PROTECTION WAS CONSIDERED NECESSARY IN 1973 WHEN LANDLORDS WERE TAKING UNFAIR ADVANTAGE OF THEIR BARGAINING POSITION, THE PROPERTY MARKET IS NOW CONSIDERED MORE ORDERLY, AND THERE ARE A FAIR NUMBER OF VACANT FLATS AVAILABLE FOR RENTING.

HE EXPLAINED THAT THESE PROVISIONS WILL, IN THE MAIN, AFFECT ONLY THE UPPER END OF THE MARKET COVERING MEDIUM AND LARGE FLATS WHERE THE TENANTS ARE MORE CAPABLE OF LOOKING AFTER THEIR OWN AFFAIRS. MOREOVER, MOST OF THESE TENANTS WILL STILL BE ENTITLED TO THE SIX MONTHS' NOTICE OF TERMINATION UNDER PART V OF THIS LEGISLATION.

PROVISION IS MADE FOR AN ADDITIONAL RENT TO BE CHARGED WHERE IMPROVEMENTS ARE CARRIED OUT BY A LANDLORD TO POST-WAR PREMISES. +THIS PROPOSAL IS MADE TO ENCOURAGE LANDLORDS TO IMPROVE THEIR PROPERTIES EVEN THOUGH THE RENTS THEY RECEIVE MAY BE RESTRICTED, AND MIGHT COVER SUCH MATTER AS ADDITIONAL SECURITY MEASURES, RECREATION FACILITIES, IMPROVED LIFT SERVICES, AND SO ON.+

/THE MAJOR