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Last week, Ardern had announced many changes to the housing market, which included removal of interest as a taxable expense for landlords, increased income caps for first home buyers and extension of bright line test. The government has also agreed to pay for the infrastructure needed to make more land ready to build on.
However, the housing package announced by the government did not address the struggles faced by renters and beneficiaries. Market experts are expecting that the cost of rents might rise and there would be an increase in homelessness.
The continued emphasis on home ownership as a means of prosperity and security is ineffective and does little to benefit the majority of New Zealanders who rent.
The government’s response to the housing changes has been considered unenthusiastic. More ambitious solutions to curb financialisation and decolonise housing environment may have had a much greater effect, but these measures are unlikely to help Labour to get re-elected.
Renters are still struggling
Tenants’ advocate at Manawatū Tenants’ Union, Ben Schmidt, stated that the latest housing package would mean nothing much for the most vulnerable Kiwis.
The first implementation of rent control was seen in Aotearoa since the 1980s through a rent freeze, just days after raising COVID-19 warning levels in 2020. In April 2020, an open letter was also organised with unions, neighbourhood associations, and social programs, calling for the government to increase wages, ensure rent rates were capped after the freeze ended, and create considerably more affordable housing.
However, nothing changed even after the opportunity. Manawatū Tenants’ Union witnessed a major rise in tenants, asking for help with relentless rent increases as the rent freeze ended in September 2020.
Wellington Renters United spokesperson Ashok Jacob stated that there was a need for a capon the rise in rents unless landlords had made substantial advances to property.
Specific tenants are voicing their dissatisfaction with the package's complete disregard for their condition. Ben Schmidt also claimed that the package did little to support the majority of homeowners or families in emergency accommodation who were in dire need of a transition right now.
IMF has also suggested NZ to introduce adequate unemployment benefits. Instant rent control, a massive state housing build, and liveable incomes for all are some changes that can help renters.
