Rental red tape will push up housing costs


 

Renters in cities like Auckland and Wellington will be paying higher rents as a result of Phil Twyford’s proposed ‘Healthy Homes Standards’, says ACT Leader David Seymour.

 

“NZIER’s cost-benefit analysis of the new standards notes ‘landlords facing the cumulative cost of complying with several standards may face costs up to around $10,000 for an average sized New Zealand house’.

 

“It goes on to say that the ‘tighter the rental supply relative to demand the more likely it is that costs can be passed through. Tight supply is most likely in main cities or smaller centres experiencing significant growth.’

 

“Landlords in the main centres will be passing the vast majority of the additional $10,000 on to renters.

 

“A shortage of housing caused by suffocating red tape has led to skyrocketing housing costs. The poorest New Zealanders spend 54 per cent of their income on housing – up from 27 per cent before the Resource Management Act was passed.

 

“New red tape will only exacerbate the situation.

 

“If Phil Twyford wants to create a renters market he must reform the RMA. That would free up land for development, creating a housing boom, and put downward pressure on housing costs.

 

“This Government was elected to solve the housing crisis. They have been a major disappointment thus far.”