Housing Minister Urges Renters to Negotiate Amid Price Decline

Housing Minister Chris Bishop has urged tenants to take advantage of the declining rental prices by negotiating better deals with their landlords. Speaking after a Select Committee meeting on housing, Bishop noted that rental prices reached their lowest level in two years as of September 2023, prompting some landlords to offer incentives to attract potential renters.

Bishop emphasized the importance of negotiation, saying, “I’d encourage people to go and negotiate with their landlord and if they think they can get lower rent, they should, because that’ll be good for them and it will be good for their own back pocket.” He provided an example of a tenant who successfully negotiated a rent reduction from $650 to $600 per week after discovering similar apartments at a lower rate within the same building.

The Minister acknowledged that escalating rents have been a persistent issue in New Zealand for the past two decades. He asserted that the current market conditions have shifted the power dynamics in favor of tenants. “The idea that it goes the other way, that the power is actually in the hands of tenants to go and negotiate with landlords… those days, at the moment, anyway, are over,” he stated.

Government Housing Goals and Challenges

During the meeting, Kieran McAnulty from the Labour Party questioned Bishop about the government’s commitment to building 1,500 new houses by June 2027, including 550 houses in 2026. Bishop confirmed that the government is on track to meet its targets, although he acknowledged potential delays due to construction challenges and issues with local council consents.

“Some of the feedback that I’m sure Kāinga Ora may mention to you is that they are struggling with consenting, for example, with councils,” Bishop explained. He faced scrutiny when McAnulty presented data indicating that only 337 houses are expected to be delivered in the 2025/26 financial year, with 462 of those beyond the deadline of 30 June 2027.

Bishop reiterated the importance of maintaining pressure on the construction sector to deliver these housing projects, stating, “I don’t control consenting and I also don’t control the construction sector… all I can do is approve the funding and hold people’s feet to the flame.”

Support for Vulnerable Populations

In response to inquiries from Tamatha Paul of the Green Party regarding public housing, Bishop reiterated the government’s commitment to support vulnerable populations, including those struggling with addiction, mental health issues, or transitioning out of incarceration. He emphasized that while the government aims to address the housing crisis, it does not mean withdrawing support from public safety nets.

“There will always be people… that the government should step in to support. That’s not up for debate, that is government policy and always will be,” Bishop asserted. He expressed interest in enhancing support for individuals released from prison, highlighting the high costs associated with incarceration.

“One of the areas I’m particularly passionate about is prisoners who leave prison and bounce out of the corrections facilities and often have nowhere to go and inevitably end up committing crime,” he said. Bishop noted that the most expensive form of social housing is, in fact, prison.

Paul also raised concerns about youth homelessness, referencing a recent State of the Street report that indicated an increase in rough sleeping. She highlighted the lack of transitional housing in several regions, including Rotorua and Gisborne. Associate Housing Minister Tama Potaka acknowledged the severe housing deprivation affecting youth and stated that the government is working to fund placements for homeless young people.

“Part of that is whānau disconnect and some other challenges, whether they’re mental health or otherwise,” Potaka explained. He mentioned that funding has been allocated to various organizations, including Mā Te Huruhuru, to help support transitional housing efforts in Auckland.

Both ministers concluded the session by emphasizing the ongoing challenges in addressing housing shortages and the need for collaborative efforts to support vulnerable populations across the country.