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Warm Rentals Bill proposals may get landlords hot under collar

Property investors and landlords may be legally required to ensure their properties meet Government standards for heating and energy efficiency if a Bill proposed by Green MP Gareth Hughes becomes law.

Tuesday, February 7th 2012, 12:00AM 3 Comments

by Benn Bathgate

Hughes said he drafted the Energy Efficiency Conservation (Warm Healthy Rentals) Amendment Bill to correct what he described as a "market failure" around rental accommodation.

He said the lack of incentives for landlords to properly insulate homes and have energy efficient heating was a market failure.

He said this failure manifested itself in two ways; landlords find it difficult to recoup any investment through capital gains, and tenants pay the power bills but often do not stay long enough to want to make any capital outlay themselves.

Hughes said that in Australia making energy efficiency ratings on properties a matter of public record raises the value of the improved properties and increases competition between landlords, "with benefits accruing to tenants, landlords and the state through lower health costs."

The Bill includes regulations to prescribe the definition of rental accommodation and minimum energy performance standards, and intends the standards be in place by October 2012 and all residential rental accommodation to meet the minimum standards by 2018.

Also included in the bill is regulation to prescribe fines to be imposed for non-compliance, up to $10,000.

He admitted any legal requirement for landlords to spend money could result in costs being passed on in the form of higher rents, but that mitigating measures could be put in place.

He said the government should "extend the insulation funding scheme and make low interest loans available to landlords for improvement works."

Hughes said that whether the bill was passed into law or not, he was confident there would be either reform or additional legislation around rental property.

"I think we need to acknowledge as we move from more of a home ownership society to a rental society, we need to do more to see a professionalisation of rental accommodation."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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Comments from our readers

On 9 February 2012 at 4:40 pm Terry Goodall said:
He's right, & for all the right reasons - bring it on!
On 10 February 2012 at 9:17 am Tim said:
Years of lax building regulations and fly-by-night developers has left the country with an appalling housing stock. With associated health issues something needs to be done, but it seems unlikely that landlords can afford it as there is little if any profit in rental investment these days, and tenants can't actually afford to pay more rent.
On 28 February 2012 at 4:39 pm Hayley said:
I'm a landlord and a tenant and I am frustrated with the living conditions I am in. No heating, damp rooms, mouldy curtains (I had to replace them myself). Yet for my tenants I look after them provide them with heating, new curtains, extractor fans etc as I want them to stay...not trap them into a 1 year fixed contract. I think this bill will weed out the horrid landlords that don't give a crap about their tenants health and wellbeing. If you look after your tenants and provide a nice home for them they don't mind paying a little bit extra...what other choice do they have...a cheaper cold and damp place? I know which I prefer!
Commenting is closed

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

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