Auckland Housing NZ Rent Reductions AnnouncedHousing
Housing Minister Murray McCully has announced that about 40% of Housing New Zealand tenants in Auckland are in the process of being advised by mail of a reduction to their rent.
Mr McCully said about 10,000 of the 24,500 Auckland households renting with Housing New Zealand will receive rent reductions in December averaging about $9 a week.
He said the Housing New Zealand rent reductions follow a downward movement in private sector rents in Auckland.
"It has been clear over recent months that there has been a general easing in the private sector rental market with some areas receiving decreases," said Mr McCully.
"Housing New Zealand is required to follow the private sector, so rent reductions for its tenants are beginning to occur," he said.
"If the prevailing low income household market rents continue to weaken then Housing New Zealand tenants can expect further rent reductions."
He said the company had a policy of reducing rents immediately it could quantify prevailing rental movements.
"Under this policy, it is possible for tenants to receive more than one rent reduction each year."
However he said rental increases only occurred once a year, on the annual anniversary of the tenant's occupation of their Housing New Zealand home.
Mr McCully said Housing New Zealand is also currently assessing its rents in other parts of the country against local private sector rents.
"There may be some reductions in other parts of New Zealand but these are not likely to occur on the scale seen this week in Auckland."