About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 6th, 6:43PM
rss
Latest Headlines

Rents will rise - Greens

Increasing the Accommodation Supplement could lead to higher rents, Treasury has previously advised, the Green Party says.

Monday, May 29th 2017, 12:00AM

by Miriam Bell

Claims that landlords will be rising rents were immediate following last week’s Budget announcement that there will be an increase to the Accommodation Supplement.

Now Green Party co-leader Metiria Turei has released some 2015 Treasury advice to the Prime Minister and Cabinet who were considering an increase to the Accommodation Supplement in that year’s Budget.

In the report, Treasury officials said there is a risk that the increased subsidy will lead to an increase in rents.

The risk was present because landlords might raise rents in response to tenants being able to afford to pay more.

Turei said that raising the Accommodation Supplement might give tenants more cash in the short term but, in the current broken housing market, rents will adjust to swallow that up quickly.

“We’ve already seen landlords advising each other that with a higher Accommodation Supplement on offer, now is a good time to raise rents.

“Unless the Government commits to building thousands more affordable houses, the Accommodation Supplement is really just a subsidy flowing straight to landlords."

The Government should instead be building houses, she said.

However, the idea that rents will automatically go up in line with an increase in the Accommodation Supplement doesn’t hold much traction in some quarters.

The 2015 Treasury report itself said there was no clear consensus on the degree to which raising the Accommodation Supplement might result in high rents generally.

It also recommended that the Accommodation Supplement should be increased.

Prime Minister Bill English told media today that they were focused on families, not on landlords and it would be worse not to increase the supplement.

He has been advised that the Ministry of Social Development researched it and couldn't find any evidence that when it was last changed in 2005 that increase went to landlords rather than families.

Landlords are restrained by the market and don’t have the option of just banging up the rent to any number they can think of, he said.

NZ Property Investors Federation executive officer Andrew King agreed.

He said that when the Accommodation Supplement has been raised before there has not been a corresponding increase in rents.

“Landlords don’t get Accommodation Supplement money directly. Rather it is received by the tenants,” King added.

Both the Green Party and the Labour Party actually support the increase to the Accommodation Supplement but feel it is problematic.

Both parties have extensive housing building programmes as a key part of their housing policy packages.

The Government also recently announced a house building programme for Auckland, which will see the development of 34,000 new houses.

Read more:

Budget boost for tenants 

Super City to get 34,000 new houses 

 

« Tenant damage law changeAPIA issues sub-let warning »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 ▲4.05 4.49
ANZ Special - 3.55 ▲3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide ▼5.65 ▼4.75 ▼4.75 -
Credit Union North 6.45 - - -
Credit Union South ▼5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 4.14 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.39 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.39 3.45 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 4 December 2019 9:11am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com