Housing Minister Urges Renters to Negotiate Amid Price Drops

Housing Minister Chris Bishop is encouraging tenants to take advantage of falling rental prices by negotiating lower rents with their landlords. In September, rental prices hit their lowest level in two years, prompting some landlords to offer incentives to attract potential renters. Speaking after a Select Committee meeting on housing, Bishop emphasized the importance of tenants asserting their rights in the current market conditions.

“I’d encourage people to go and negotiate with their landlord,” Bishop stated. “If they think they can get lower rent, they should, because that will be good for them and it will be good for their own back pocket.” He shared an illustrative example of a tenant who successfully negotiated his rent from $650 to $600 after discovering similar apartments in his building were available for the lower rate.

Bishop identified the issue of rising rents as a persistent cultural problem that has plagued the country for two decades. He remarked, “The idea that the power is actually in the hands of tenants to go and negotiate with landlords, rather than what has been the status quo for too long, is significant. Those days of lining up and fighting like a herd of cats to get into a rental property are over, at least for now.”

Concerns Over Housing Development Targets

During the same meeting, Labour MP Kieran McAnulty questioned Bishop about the government’s commitment to constructing 1,500 new houses by June 2027, with 550 set for completion in 2026. Bishop confirmed that while he had received positive feedback regarding the timeline, challenges remain. “There’ll be some stuff that will inevitably slip,” he acknowledged. “Some of the feedback that Kainga Ora may mention is that they are struggling with consenting, for example, with councils, leading to delays in some projects.”

McAnulty challenged Bishop’s optimism by presenting a report indicating that only 337 houses are projected to be completed in the 2025/26 financial year, with 462 of those beyond the June 2027 deadline. In response, Bishop reiterated the unpredictability of construction timelines, 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 accountable.”

Addressing Public Housing and Youth Homelessness

In further discussions, Bishop addressed questions from Green Party MP Tamatha Paul regarding the government’s stance on public housing and ongoing funding for state homes. He reaffirmed his commitment to combating the housing crisis while ensuring that public safety nets remain intact. “There will always be people with addiction challenges, mental health issues, or those exiting prison who require government support,” he stated.

Bishop also expressed a particular interest in providing better support to newly released prisoners, citing the high costs associated with incarceration. “The most expensive form of social housing the government provides is prison,” he remarked, highlighting the need for more effective transitional programs.

Paul also raised the issue of youth homelessness following the release of a report indicating worsening conditions for young people without stable housing. She noted the lack of transitional housing in several areas, including Rotorua, Napier, and Gisborne. Associate Housing Minister Tama Potaka acknowledged the severe housing deprivation affecting youth, stating, “Youth homelessness is part of the severe housing deprivation that people are facing.”

Potaka mentioned that while government funding for placements for homeless young people is ongoing, challenges persist due to family disconnections and mental health issues. He expressed optimism about recent allocations of funding to support transitional housing initiatives, although he acknowledged that further efforts are needed.

As the government navigates the complexities of the housing market, the emphasis remains on empowering tenants and addressing the urgent need for affordable housing solutions.