tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, July 10th, 9:53AM

News

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
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    2 hours ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    3 hours ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    20 hours ago by LNF
  • Commission disclosure: What's material?
    “The consumer should know that there is at times large amounts of comission involved but it has to be balanced with not confusing...”
    24 hours ago by Good Hamish
  • Commission disclosure: What's material?
    “There should be no place for a subjective materiality test in the disclosure regulations, especially where is is the party...”
    1 day ago by Paul Flood
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

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