Reform of The Tenancy Act FAQs

Reform of The Tenancy Act FAQs

How will giving away Housing NZ create more houses?

Answer

The only thing holding back the expansion of community housing providers under the current model is lack of equity. With the Housing NZ stock in their possession they would have land and the equity they need to develop it further. They would be able to do this far quicker than Housing NZ. Instead of selling houses as Housing NZ are doing we would expect the community housing sector to develop a mixed portfolio of rentals – including affordable market priced rentals. 

http://www.top.org.nz/top_s_social_housing_policy

Aren’t you privatising social housing?

Answer

No, we are following in the footsteps of many other countries that have a proud tradition of housing associations run by voluntary or community providers. These have proven to provide a better service to tenants than state owned operators.

 

https://thedailyblog.co.nz/2017/07/28/guest-blog-the-opportunities-party-not-left-not-right-just-what-works

In Germany tenants are expected to fit out the entire house, how will that help low-income households?

Answer

This is an element of the German housing culture, but is not part of our policy. Landlords will still be able to let properties with a range of chattels, as long as certain basics are available. 

If you remove the incentive for landlords to own rental properties won’t this lead to a housing shortage?

Answer

It might under the current tax system. But combined with TOP’s tax reform policy this will see an increase in rental accommodation as property owners look to get a return on their investment to pay their tax bill. 

Won’t this make rentals more expensive?

Answer

The major driver of house prices and rentals is land prices. Under TOP’s tax policy the increase in land prices will end. From that point, if landlords want to increase their return on their rental they will have to invest in making the rental better. 

What impact will this policy have on house prices?

Answer

Under TOP’s tax policy, house prices will be held stable over time. www.top.org.nz/top1

Would such a policy be retrospective (will existing tenant be covered)?

Answer

No, it would be illegal to implement policies retrospectively

Will the new system cost more or less to administer than the current system?

Answer

It will be the same as the current system, just that the specifications will be higher. 

If long term tenants improve a property by redecoration etc will they get that money back?

Answer

If they want money back, it would be up to them to make an arrangement with their landlord. 

How will rental prices be controlled without government regulation?

Answer

Rental prices are still allowed to respond to the market price, but with a price break. If rents increase by more than a certain percentage in a year (without an agreement with the tenants, e.g. if the property is being improved) the tenant could complain to the Tenancy Tribunal. 

What about accommodation for transient residents like students?

Answer

In certain areas short-term rentals will be possible, but they will not be the norm. Regardless, if renters choose to leave a tenancy (e.g. if they finish study and move city) they can still give notice as they currently do. 

Under what circumstances will landlords be able to evict tenants?

Answer

Non-payment of rent or damage to the property.