A rental crisis. Didn’t I predict that too?

Everything that the current government has signalled leading into the election is landlord unfriendly.  And with the house prices topping out, many are choosing to exit the market.

Renters are finding it particularly hard in the capital, with the total stock of rental properties in Wellington down by 69 percent.

TradeMe Property spokesperson Nigel Jeffries said a lot of property owners were not offering rentals in the first place, leaving potential tenants with nowhere to go.

“At a national level the total stock [of rental properties] was 50 percent lower than it was a year ago.”

Half of a year ago.  Forget first-home buyers getting into a home.  This is going to be the next housing crisis.  And it has been brought on by talk of Rental Warrants of Fitness, Capital Gains Tax, barring of non-resident purchases of existing homes, improving renters rights such as life-time rents just to mention a few.  Here’s the other major problem:  

The drop in the number of rental properties was made worse with demand up across New Zealand, Mr Jeffries said.

“If you look at the volume of tenants looking at properties, what we can say is that the average rental property is now receiving 28 percent more inquiries in the first week that it is listed, compared with a year ago.”

Mr Jeffries said people renting homes would now stay in them for longer, when earlier they would already have moved on to home ownership.

High prices for homes and tough lending rules for banks left them needing to rent for longer than earlier generations had to endure.

Bottom line is that if you are a marginal renter, you’re going to have to stay where you are and keep your rent up to date and the property nicely looked after.  Not only are rents going to go up, landlords are going to be able to pick the best of the best.  People with problem histories need not apply.

Labour is going to have a whole new wave of homeless to add to their already inflated total.

 

– RNZ

 

 


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