Briefing for the Prime Minister on rising rents

In the spirit of bipartisanship, National has helped the Prime Minister prepare for her post-Cabinet press conference today by collating the data she requested on rent increases – although she might want to think carefully before drawing public attention to it, Leader of the Opposition Judith Collins says.

“Unfortunately for the Prime Minister, recent trends in house price growth, rental hikes and wage growth don’t make good reading for her Labour Government.

“Jacinda Ardern has unleashed a raft of changes on rental properties: two extensions to the bright-line test, banning letting fees, and major amendments to the Residential Tenancies Act. All the way through, officials told her that rents would increase but her Government maintained a view that the officials were wrong.

“The Government’s policies have seen weekly rental costs shoot up a massive $120 in just over three years. This is a record increase and a clear sign these policies are failing.

“Rents have increased by 8 per cent per year under Labour, compared to 3 per cent per year under the previous National Government. The median house price has also spiralled out of control on Jacinda Ardern’s watch, jumping 12 per cent per year compared to the 5 per cent per year increase under National.

“Neither of these increases under Labour have been in step with wage growth. The median weekly income increased by 2.7 per cent per year under the previous National Government and has only increased by 2.1 per cent per year under the current Government.

“The sad reality is, renters have been thrown under the bus by this Labour Government.

“As was the case with its changes to rental standards last term, Labour has failed to grasp that forcing more costs onto landlords will ultimately reduce the number of rentals on the market, making renting more unaffordable and exacerbating homelessness.

“This is why Finance Minister Grant Robertson is now on the verge of dictating terms to landlords even further by introducing a cap on how much rent they can charge.

“This policy-on-the-fly approach is eroding the confidence of property investors and, ultimately, discouraging them from building more houses, which is exactly what needs to happen to solve New Zealand’s housing shortage.

“But at least now the Prime Minister will be fully informed when she addresses the media today. I hope she has some decent answers for the many New Zealanders who will be worse off because of her Government’s housing policies.”

Attached here is the data on houses prices, rents and wage growth that the Prime Minister’s Office has sought ahead of her post-Cabinet press conference today.