Official advice shows rents could rise following Budget

Raising the Accommodation Supplement could push rents up as more than a billion dollars flows from the Government’s accounts to landlords over the next few years, according to official advice from the Treasury and DPMC, the Green Party said today.

In a report to the Prime Minister from the last time National considered raising the Accommodation Supplement, officials advised that ‘There is a risk that the increased subsidy will lead to an increase in rents.’ This is because landlords may raise rents in response to people who rent being able to afford to pay more.

“Raising the Accommodation Supplement might give people who rent a bit more cash in the short term, but in the current broken housing market I think we’ll see rents adjust to swallow that up pretty quickly,” said Green Party Co-leader Metiria Turei.

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

“Rents have risen and the rental market is much tougher than it was two years ago when officials first raised the alarm.

“The Accommodation Supplement has become $360 million for papering over the cracks when the Government should be building houses.

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

“Between the Accommodation Supplement and Kiwisaver HomeStart grants, National’s answer to the housing crisis is just to throw more cash at the problem, which just causes rents and house prices to rise even more.

“In Government, the Green Party will build thousands of affordable homes through a rent-to-buy programme that gives all families a decent shot a home ownership,” Mrs Turei said.

Latest Housing Announcements

Story

Healthy, affordable homes a Green Party priority for Wellington

The Green Party would push to ensure everyone in Wellington has a warm, safe and affordable place to live as part of the next Government.
Read More

Story

Lobby group advice to keep homes cold until after Election Day dangerous

It is appalling and negligent that landlords are being encouraged to keep their properties cold and damp until after the election, as advised by th...
Read More

Homes for all

We know it’s not just four walls that makes a home. A home is somewhere warm that keeps out the winter draught and stops us from getting sick. It’s...
Read More

Story

Greens celebrate rent reforms

The Green Party is celebrating the passing of the Residential Tenancies Amendment Bill, calling it a win for people who rent.
Read More

Story

Guaranteed minimum income needed to cushion impact of growing underemployment

With the June 2020 quarter showing underemployment increasing, the Green Party is calling for a Guaranteed Minimum Income and an increase to the ab...
Read More

Housing

Everyone deserves a warm, dry, affordable home that supports their wellbeing and helps them to be part of a connected community. Successive governm...
Read More

Latest Building and Construction Announcements

Sustainable buildings and warm dry homes

Everyone has the right to a warm, dry home. Instead, housing in Aotearoa often makes us sick from damp and cold. In Aotearoa, much of our housing s...
Read More

Story

National would rather save landlords some cash than look after sick kids: Green Party

The National Party is more concerned about the back pocket of property investors than sick kids and the elderly, Green Party Co-leader Marama David...
Read More

Story

Stop charging homeless people for emergency housing

The Green Party is calling for the Government to stop sending homeless people into thousands of dollars of debt with the Ministry of Social Develop...
Read More

Story

Green Party: Building code out of date and won’t ensure warm, dry homes

In response to calls for a compulsory energy rating for buildings the Green Party is renewing calls for the building code to take better account of...
Read More

Story

Green Party calling for bold steps to tackle issues in Salvation Army report

The Green Party agrees with the Salvation Army that bold new steps are needed to stop a worrying trajectory of increased rent rises and homelessnes...
Read More

Story

Dilapidated Pink Flats textbook example of why we need a Warrant of Fitness

Families living in dilapidated conditions in a boarding house in Whanganui further demonstrates why a Warrant of Fitness for housing is required, G...
Read More