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City Housing rent adjustments

Media Release 20 April 2006


City Housing rent adjustments


Rents for City Housing properties have been adjusted by an average of 37c a day to provide for long-term maintenance and management of the Christchurch City Council’s 2600 housing units.

The adjustments, which take effect in July 2006, are in line with the Council’s 2003 policy to annually adjust rents by CPI.

As one of the City’s largest landlords, the City Council has a responsibility to ensure it provides safe, accessible, and affordable housing to people on low-incomes, including the elderly and people with disabilities, said City Housing Manager Kevin Bennett.

“The rents have been assessed based on current and long-term future costs of maintaining the housing stock and not for profit.”

He said City Housing was a self-funding operation and did not receive any funding from rates.

“While the Council recognises the average adjustment of $2.56 a week will be significant for some tenants, the rents are still 45 per cent below market rates.

“Any financial burden should be eased with new Government benefit and accommodation supplement rates.”

He said the adjustments were in line with The Royal Commission on Social Policy’s affordability threshold. This sets rent at 25 to 30 per cent of gross income, assessed as providing sufficient income to maintain an acceptable standard of living.

“Most tenants will be eligible to recieve the accommodation supplement which provides a subsidy to help pay for rents in excess of the assessed entry threshold.”

City Housing rents remained the same for many years until 2003 with only small adjustments in 2004 and 2005. “The year’s adjustment is necessary to ensure we remain responsible and plan to continue providing quality rental housing for the future.”


ENDS

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