Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Rent increases bad news for all

Media Statement for immediate release

15 November 2013

Rent increases bad news for all

“The impact of rent increases low income groups in Auckland is not good for anyone”, said Andrew King, Executive Officer of the NZ Property Investors’ Federation, in response to a Salvation Army’ report by social policy analyst Alan Johnson.

Mr King said it is little wonder that rental prices have increased at a faster rate than general inflation since 2008. Rental prices have been affected by large increases in rates, repairs and insurance as well as the loss of depreciation as a tax deduction.

Mr King points out that costs have been increasing in all sectors of the economy since 2005. No landlord wants their tenant to be worse off after paying the rent, but on the other hand no landlord will stay in the business of providing rental accommodation if they are making a loss.

It is likely that rent increases would have been higher if low mortgage interest rates were not helping to offset the other cost increases.

“It is important that the report states that the maximum rates of accommodation supplement have not changed since 2005. This is definitely contributing to the fact that five of the six low-income groups examined in the report are worse off in real terms.”

“Auckland has experienced a higher percentage of population growth than other areas in New Zealand, said Mr King. “This fact will create pressure on available accommodation and cause higher rent increases in this city than in other parts of the country.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Hospitality NZ: Hospitality Wages Jump 9% To Pass Living Wage
Wages and salaries across the hospitality sector continue to increase despite businesses having to battle through some of the toughest trading periods in living memory... More>>



Climate Leaders Coalition: Launches New Statement Of Ambition, Appoints New CEO Convenor

The Climate Leaders Coalition is tonight officially launching a new Statement of Ambition to accelerate business action on climate change... More>>


Retail: New Law Paves Way For Greater Supermarket Competition

Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>



MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>



Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>
Entrust District: Dividend Will Be Welcomed After Another Tough Year
We’ve all heard of the saying; “if it sounds too good to be true, it probably is” but for Aucklanders within the Entrust District, getting their share of Entrust’s 2022 annual dividend payment really is as good as it sounds... More>>