Rent increase freeze to change the market

The Government’s Covid-19 lockdown prompted move to freeze residential rental increases for six months (from March 26) will stop rent growth nationwide in its tracks, according to Trade Me Property.

Prior to the freeze, the rental market nationwide had seen strong price growth over the last 24 months and, in fact, the latest Trade Me Rental Price Index has the national median weekly rent per week up by 4% year-on-year to $520 in April.

Median weekly rents were up year-on-year in many regions around the country in April. That included the Wellington region where the median rent hit $575, which was an 8.5 % year-on-year increase.

However, Trade Me Property spokesperson Aaron Clancy says those increase are because their Rental Price Index data is based on a three-month rolling average.