XN000022-1976-06-04 — Page 2

FRIDAY, JUNE 4, 1976

RENT CONTROLS ON POST-WAR DOMESTIC PREMISES TO BE EXTENDED

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GOVERNMENT TODAY ANNOUNCED THAT IT IS PROPOSING TO EXTEND RENT · CONTROLS FOR POST-WAR DOMESTIC PREMISES FOR A FURTHER THREE YEARS FROM DECEMBER THIS YEAR. THUS, TENANTS OF CONTROLLED PREMISES WOULD CONTINUE TO ENJOY SECURITY OF TENURE UNTIL THE END OF 1979.

THIS PROPOSAL IS CONTAINED IN THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL 1976 PUBLISHED IN THE GAZETTE TODAY. COMMENTING ON THE BILL, THE SECRETARY FOR HOUSING MR. IAN LIGHTBODY, SAID THAT THE EXTENSION AFFIRMS GOVERNMENT RECOGNITION OF THE CONTINUING NEED TO PROTECT TENANTS BOTH FROM UNREASONABLE INCREASES IN RENT AND FROM EVICTION, AND SHOULD RE-ASSURE TENANTS AS TO THEIR FUTURE POSITION.

HE EXPLAINED THAT SO LONG AS THERE EXISTED A LARGE GAP BETWEEN REGULATED RENTS AND MARKET RENTS, TENANTS WOULD CONTINUE TO REQUIRE PROTECTION. EVEN FOLLOWING THE SECOND ROUND OF INCREASES, NOW DUE IN RESPECT OF MANY PROTECTED TENANCIES, IT IS LIKELY THAT THE NEW RENTS OF MOST OF THOSE FIRST CONTROLLED IN 1970 WILL BE LESS THAN 65 PER CENT OF MARKET RENTS, AND IN THESE CIRCUMSTANCES DECONTROL IS NOT CONSIDERED TO BE IN THE PUBLIC INTEREST.

NEVERTHELESS, LANDLORDS ARE ENTITLED TO SOME INCREASE IN RENTS AND THE PRESENT PROVISIONS FOR REGULATED INCREASES EVERY TWO YEARS UNDER THE +FACTOR+ SYSTEM IS TO CONTINUE.

THE BILL ALSO INCLUDES PROVISIONS FOR A LANDLORD TO OBTAIN AN INCREASE IN RENT WHERE HE IS PREPARED TO CARRY OUT IMPROVEMENTS NOT REPAIRS - TO PREMISES. PROPOSALS FOR THIS WERE INCLUDED IN A BILL AT THE END OF LAST YEAR BUT WERE WITHDRAWN FOR FURTHER CONSIDERATION. THE NEW PROPOSALS LOWER TO $5,000 THE MINIMUM AMOUNT OF EXPENDITURE NECESSARY TO QUALIFY FOR AN INCREASE- EXPAND THE DEFINITION OF IMPROVEMENTS+ TO COVER REPLACEMENTS OF DEFECTIVE OR WORN-OUT FITTINGS SUCH AS PLUMBING WORKS OR WIRING AND PROVIDE TENANTS WITH A RIGHT OF APPEAL.

LANDLORDS ARE ENCOURAGED TO SEEK THE AGREEMENT OF THEIR TENANTS TO THE PROPOSED IMPROVEMENTS OR REPLACEMENTS IN ADVANCE, SINCE THE DRAFT LEGISLATION PROVIDES FOR A MAXIMUM OF 20 PER CENT OF THE COST OF THE IMPROVEMENTS OR REPLACEMENTS TO BE RECOVERED BY AN INCREASE OF THE ANNUAL RENT PAYABLE, THESE PROPOSALS ARE AIMED AT ENCOURAGING LANDLORDS TO IMPROVE THEIR PROPERTIES AND THUS THE ENVIRONMENT OF THEIR TENANTS.

FURTHER MINOR AMENDMENTS ARE INCLUDED IN THE BILL TO ASSIST IN RESOLVING DISPUTES BETWEEN LANDLORDS AND TENANTS AS TO THE PRIMARY USER OF PREMISES.

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