Debatable

New Zealand is experiencing a housing crisis and it is no secret, and while both political sides could blame each other, this isn’t going to solve the issue. Our talented students are one of the groups that have been affected by the crisis and our Government is working to help our students in areas where it matters most, while also making the housing crisis the priority for 2021. Students have been forced to compete in a rental market with families and working professionals due to the shortage of housing supply in Hamilton, and across New Zealand. In the coming weeks, Minister of Finance Grant Robertson will announce the first part of our plan to tackle the crisis in regards to the demand of homes, while later in the year we will release a plan tackling the issue of supply. In the meantime, our Government has also been focusing on renter rights and security around their homes. As part of the Tenancy Law changes, we made it so rents can only be increased every 12 months. For students who plan to just rent for the year before moving away for the holidays this allows them a guarantee that their rent will not change within the year and give them some financial security. We’ve also put in law changes that mean rental properties cannot be advertised without a rental price listed, and landlords cannot invite tenants to bid on the rental. All requests to assign a tenancy now must be considered by landlords and they cannot decline them unreasonably. It’s about giving everyone a fair chance, no matter what their background. Our Healthy Homes Guarantee also means all rental properties will soon have heating and insulation, meaning your home will be warm and dry. All rentals should be fully insulated by now, while heating standards should be met by 2024 there must be one or more fixed heaters that can directly heat the main living room. In our first term we also raised the student allowance by $50, while also recently raising the minimum wage to $20.00 per hour. We also made the first year for University students free. The media will point fingers, and parties will blame each other, but it’s going to require team work from Central Government, local councils, and listening to our students to find solutions and put them into action.

The question of rental affordability largely depends on disposable income. Students generally receive a limited income, and consequently, many will struggle with continuous rental price increases. The recent surge in private accommodation costs is unaffordable for many students and is pressuring them out of the market. The cause of the latest rental price escalation is two-fold. First, the Government’s increased requirements on landlords have contributed to private rental unaffordability for those on student incomes. All landlords must comply with the laws in the Residential Tenancies Act. Every time tenancy rules are updated to increase landlords’ expenses, the cost will undoubtedly be transferred through to the tenant. Consequently, although these changes may enhance your rental property and the security of the tenancy agreement, it also means that as a tenant you will be paying for these additional services. The second driver is New Zealand’s increasing house prices. As landlords must pay more for properties, they will increase rent prices to cover the mortgage and additional costs on those properties. The media is pushing the narrative of growing house prices for several reasons. First, with double-digit percentage house price increases under this Government, many prospective new homeowners are shut out of the market and feel that they can no longer purchase their own home. Second, a market that continuously rises at exceptional rates causes market unrest as the public generally expects a correction in house prices at some point. A significant correction would be brutal to the New Zealand economy. Currently, this high spending Government is encouraging house price surges. Alternatively, National would have strong fiscal management of the Government finances. This would lead to improved structural economic conditions in New Zealand. National will also strengthen the supply of new housing with improved rules and greater use of partnerships to deliver housing. This contrasts with the current Government, which has promised immense housing supply but has delivered virtually none.