Govt looks at moving on state house tenants

Govt to 'review' 53,000 state house tenancies; people will be 'given support' to move to alternative housing

Property

Govt to 'review' 53,000 state house tenancies; people will be 'given support' to move to alternative housing

16th May 13, 5:13pm by David Hargreaves

<a href="http://www.shutterstock.com/">Image sourced from Shutterstock.com</a>

The Government's moving to more aggressively manage state housing, with existing occupants of houses to have their tenancies "reviewed".

Housing Minister Nick Smith said the tenancies would be be reviewed to "ensure state housing is focused on people with the highest housing need".

Reviewable tenancies were recommended by the Housing Shareholders Advisory Group’s 2010 report. It was introduced into tenancy agreements signed after 1 July 2011, covering approximately 10,200 tenants.

The new policy of reviews will apply to an estimated 53,200 tenants and will be gradually phased in from 2014.

“This will mean people can rent state houses when they have high housing needs, and for as long as those needs persist. They will then be given support to move into alternative housing when their situation improves and they are in a position to take that step to independence.”

This change is included in the Social Housing Reform Bill introduced to Parliament today as part of Budget 2013.

It is expected that 1000 tenants will move into independent housing in 2015/16 and 2000 in 2016/17.

This policy increases the cost of state housing because the new higher-needs tenants will be eligible for lower rents. It is estimated that the policy will cost NZ$11.4 million for 2015/16 and NZ$35.4 million for 2016/17 and beyond.

Smith said the review of tenancies would be undertaken with "common sense".

“We understand the importance of certainty for tenants, particularly those with serious and long-term needs."

He said reviewable tenancies formed part of the Government’s broader social housing reforms that were aimed at supporting more people with serious housing need and using the Government’s NZ$15 billion of state houses more effectively to enable more New Zealanders to gain housing independence.

“We are extending social housing to include community providers as well as Housing New Zealand.

“We are making a record investment of NZ$2.9 billion in Housing New Zealand to make their portfolio of 69,000 homes safer, warmer, and better aligned by size and location to social need.”

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

7 Comments

by Boatman | 16th May 13, 5:47pm 1368683278

Here's a simple way to sort this out this problem of cheating .

HNZ Tenants should have the rent deducted through the IRD , just like Kiwisaver , Student Loan repayments or alimony payments .

The benefits are simple

We know it can be done because we are doing it for other deductions already
I elimnates people not advising HNZ when their circumstances change
It eliminates cases of fraud whIch cost millions of dollars winding its way through the court system, wasting court time and taxpayer money

by Stephen Hulme | 16th May 13, 6:02pm 1368684147

“This will mean people can rent state houses when they have high housing needs, and for as long as those needs persist. They will then be given support to move into alternative housing when their situation improves and they are in a position to take that step to independence.”

This change is included in the Social Housing Reform Bill introduced to Parliament today as part of Budget 2013.

It is expected that 1000 tenants will move into independent housing in 2015/16 and 2000 in 2016/17.

Is this a guaranteed subsidy to private sector landlords? - is a gold rush about to envelope the cheaper end of national dwelling market?

by Kate | 16th May 13, 6:43pm 1368686585

is a gold rush about to envelope the cheaper end of national dwelling market?

It already has - that's why FHBs are locked out - can't compete with the low end landlords for whom rates, interest on mortgages, and so on and so forth are deductable expenses.

Instead the low end landlords pay a premium (often without a deposit as they recapitalise another property or so where the value has increased since date of purchase) - and then they turn around and rent it to the would-be FHB, who collects the accommodation supplement to pay to the landlord, who charges a higher than true market-rate rent.

But I think you knew that.

by Stephen Hulme | 16th May 13, 7:12pm 1368688336

Instead the low end landlords pay a premium (often without a deposit as they recapitalise another property or so where the value has increased since date of purchase)

Not so sure of late - check out the graphs, especially the CPI adjusted values example.

by scarfie | 16th May 13, 8:28pm 1368692890

So what you are saying is that anyone receiving the Accommodation Supplement is effectively already a state house tenant?

by Chris_J | 16th May 13, 6:42pm 1368686536

Excellent, more demand for private housing! Fill state houses with people who need them, that are currently occupying garages or bunking with others (ie not renting)!! Hence private rents will soar with the extra 1000 households a year entering the market and so to will house prices. Good work BillE!!

by waymad | 17th May 13, 11:52am 1368748375

I will leave the economics of this to folk with skin in the game.

But ya has to admit, it is politically extremely astute:

It ensnares those earnest, vocal social agencies by dangling a Munny Carrot in front of their perpetually underfunded noses. This will effectively, over time, muzzle 'em.
It is a genuine extension of a benefit - there can be no question of RWDB mean-spiritedness in here. This silences the usual suspects: the GreenLab (or is it LabGreen - anyways, they are joined at the hip in perceptions now).
It is a version of a PPP - the 'private' in this case being an NGO probably with a Charitable status but let's not quibble - so can easily be presented as another 'starve the beast' initiative to the party faithful.
It is a job creator (never mind the probable reduction in HNZ types, who cares) so can be sold as a increment to real employment. Watch for the Unit Standard - coming to a tertiary ed provider near you, soon!

Win-win-win-win.

Right, what have I missed here?