Housing Minister Urges Tenants to Negotiate Lower Rents as Prices Fall

Housing Minister Chris Bishop has called on tenants to take advantage of declining rental prices by negotiating lower rates with landlords. As rental prices reached their lowest level in two years in September, some landlords are now offering incentives to attract prospective tenants. Speaking after a Select Committee meeting on housing, Bishop emphasized that renters can benefit from the current market conditions.

“I’d encourage people to go and negotiate with their landlord. If they think they can secure a lower rent, they should, as it will benefit them financially,” he stated. Bishop shared an instance of a tenant who successfully negotiated a rent reduction from $650 to $600 per week by highlighting lower rental options available in the same building.

Bishop described the escalating rents as a long-standing issue affecting the country for the past two decades. He highlighted a shift in power dynamics, suggesting that tenants now have more leverage than in the past. “The days of tenants simply lining up for rental properties are over, and the power is shifting into their hands,” he remarked.

Government Housing Initiatives and Challenges

During the meeting, Bishop also addressed a question from Labour MP Kieran McAnulty regarding the government’s commitment to building 1,500 new houses by June 2027. Bishop acknowledged that while progress is being made, delays in construction and consenting processes could affect timelines.

“Yes, that’s the advice I’ve had,” he replied. “However, some projects may slip due to the nature of construction, particularly with councils experiencing consenting issues.” McAnulty challenged Bishop by presenting evidence indicating that only 337 houses are expected to be delivered in the 2025/26 financial year and 609 in 2026/27, with a significant portion falling past the June 30, 2027 deadline.

“There’s always the risk of slippage,” Bishop conceded. “We’ll work hard to ensure these houses are delivered, but I don’t control the construction sector or the consenting process.”

Support for Vulnerable Populations

In response to questions about public housing funding, Bishop reaffirmed the government’s commitment to providing support for individuals facing housing challenges, including those with addiction issues, mental health difficulties, and individuals transitioning from incarceration.

“There will always be people who the government should step in to support, and that’s not up for debate,” he stated. Bishop emphasized the importance of collaborating with various organizations, including the Salvation Army and community housing providers, to deliver effective support.

Bishop expressed particular concern for individuals being released from prison, stating, “The most expensive form of social housing the government provides is prison. I would like to see us as a country do far more for those people.”

In a related discussion, the Associate Housing Minister Tama Potaka addressed the issue of youth homelessness. Following the release of a State of the Street report indicating worsening conditions for rough sleepers, Potaka acknowledged the severe housing deprivation faced by young people across the country.

“There’s a degree of homelessness and severe housing deprivation throughout the country, and youth homelessness is part of that,” he explained. Potaka noted that while the government is funding placements for young homeless individuals, challenges such as family disconnection and mental health issues persist.

As the government navigates these housing challenges, the emphasis remains on ensuring that vulnerable populations receive the support they need while encouraging tenants to explore their negotiating power in a shifting rental market.