Savings Passed on to Council Tenants

Savings Passed on to Council Tenants

Christchurch City Council will pass on maintenance savings to most of its social housing tenants from July of this year

This year’s planned rent increases for the Council’s social housing tenants (except those at the new Whakahoa Village complex) will drop from 5.7% to 4.3%.

Net savings of $211,000 have been made in the renegotiated social housing maintenance contract.

Last year the Council decided on a schedule of rent increases for all of its social housing tenants – except those in the Whakahoa Village complex (who have a different schedule of rent increases). Rents were to go up 5.7% from the middle of this year; then 2.8% plus the Capital Goods Price Index (CGPI) for each of the following four years.

At that time the Council also resolved that any alternative funding it received for its social housing would be applied to reduce rent increases.

The rent increase for each of the following four years will still be 2.8% plus CGPI.

“Whilst we did consider maintaining the rent increases at the levels decided last year and investing the contract savings for future maintenance, accelerated maintenance or earlier replacement of the housing units, Councillors are committed to the assurance they gave tenants last year that any alternative sources of funding would be passed on in the form of reduced rentals. We welcome the opportunity we have now to reduce the burden on some of the most vulnerable in our community at a time when so many costs are escalating,” says Mayor Bob Parker.

The Council has had no response yet to its submission to central Government seeking a one-off capital injection to bring its housing stock up to an acceptable level.

ENDS