Investors won't make a loss: King
Friday 15 November 2013
Rent increases are bad news for everyone, the New Zealand Property Investors Federation says.
By The Landlord
The Salvation Army has released a report which says that rent rises over the past five years have made all low-income groups in Auckland, except superannuitants, worse off in real terms.
A report by the army's social policy analyst Alan Johnson shows rents for the cheapest quarter of rented homes in the former Auckland City have risen faster than average since 2008 - by 21.6% for three bedrooms and 25% for two bedrooms, when median rents across Auckland rose by 17% and consumer prices by only 12.5%.
Benefits have been adjusted only in line with consumer prices, and the maximum rates of accommodation supplement have not changed since 2005.
The report, Give Me Shelter, calls for a rethink of housing policies.
NZPIF federation Andrew King said it was not surprising that rent prices had increased at a faster rate than general inflation. Rent was affected by increases in rates, and the cost of repairs and insurance as well as the removal of depreciation as a tax deduction.
He said no landlord would stay in the business of providing rental accommodation if they were making a loss.
“Auckland has experience a higher percentage of population growth than other areas in New Zealand. This fact will create pressure on available accommodation and cause higher rent increases in this city than in other parts of the country.”
He said it was important to note that the maximum rates of the accommodation supplement had not changed since 2005.
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