The residential rental market overall grew 36% (95,600 households) between 1991 and 2001, with North, West and South Auckland all experiencing growth of 40%, or greater. A range of demographic and economic changes, including cost, employment, student loans, and migration, has also contributed to a marketplace where more people are renting longer-term.
Steve Maharey said additional ongoing funding is being provided to the Ministry of Housing, starting with $1.6 million this financial year, to meet the demand.
“The new funding will enable the Ministry to respond to the significant growth in the rental housing sector, and to the corresponding increase in demand particularly for the tenancy services it provides to landlords and tenants.
“Ensuring access to high quality residential tenancy advice and education supports everyone who is in a renting relationship to achieve a more stable tenancy.
“The Ministry’s role in advising the Government on the rental housing market, and the legal frameworks that regulate it, will also benefit from the extra funding.
“Apart from $326,000 of this financial year’s extra funding, the increase will be met from an expected increase in interest income on the Residential Tenancies Trust Account, which holds bonds in trust, on behalf of residential tenants and landlords.
“The funding package includes $1.6 million for 04/05, increasing to $1.7 million in subsequent years. A funding framework, linking the Ministry’s ongoing funding to changes in demand for its tenancy-related services, will also be developed, to keep future funding in line with changes in the rental housing market,” Steve Maharey said.
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