Rents Falling In Auckland

Customers in a new Housing New Zealand development in Clendon are not only enjoying new homes, they're enjoying the benefits of widespread rent reductions, says Housing New Zealand Minister Tony Ryall.

Mr Ryall, was speaking at the opening of Eion Scarrow Village, comprising 25 architecturally designed units for mainly older residents in Clendon, Manurewa.

"When Housing New Zealand's Eion Scarrow Village customers decided to shift to their new homes the proposed weekly rent had already reduced in line with the rental market", said Mr Ryall.

"The tenants here benefited from the rent reductions just as the 47,000 Housing New Zealand tenants who had rent reductions in the past few months did. Only seven (7) tenants out of 63,000 had rent increases.

"On top of this some 310,000 New Zealand families receive income related help with their rent through the Accommodation Supplement.

"We're spending just under $900 million to give low income families more choices about where they live.

"Labour-Alliance has promised to scrap the Accommodation Supplement and replace it with a lower-level Accommodation Benefit.

"They won't give any details of how much they'll cut the benefit if they ever come to office.

"Labour-Alliance wants to cut rents for 63,000 state tenants by getting the remaining 250,000 families on Accommodation Supplement to pay for it.

"It doesn't seem very fair to me" said Mr Ryall.