No 'astronomical' rent rises in Chch - Brownlee

Posted 18 Jun 2012 by MediaStuff Popular
This item was posted on the Stuff.co.nz website - click here to view the original

 

Christchurch residents have not been hit with ''astronomical rent rises'', Canterbury Earthquake Recovery Minister Gerry Brownlee says.

Despite anecdotal reports of rent rises in the city climbing to $100 a week and welfare agencies saying the market has pushed some families below the poverty line, Brownlee has discarded a potential affordable-housing solution and continues to downplay the problem.

''My view is that we are in a reasonable position. We have to consider everything we do here in Christchurch in relation to the rest of the country, and it would be very hard to make a case that there's been astronomical rent rises here,'' he said.

The Press has reported on families being forced to stay in overcrowded houses with relatives, to live in caravans, garages and cars and to regularly eat baked beans on toast for dinner after being hit with significant rent rises.

Three-bedroom houses citywide are going for up to $40 more than a year ago, but the national average was up only $10, the Real Estate Institute of New Zealand's monthly report shows.

''Rents have risen in Christchurch but if you compare them to the rest of the country, it's hard to say we are massively out of kilter,'' Brownlee said.

Last week, a Christchurch businesswoman's ''immediate solution'' to the housing shortage was featured in The Press.

Sue Robinson coined a subsidised-housing proposal and delivered it to several Cabinet ministers, including Brownlee.

Her ambitious idea was to headlease properties in the city, rent them out at ''pre-quake affordable levels'' and meet the difference in price with the Canterbury Affordable Housing Trust.

She said the plan would immediately offer a solution for the new ''working poor'' and asked for Government funding to kickstart the initiative.

Labour earthquake recovery spokeswoman Lianne Dalziel said it was a ''sustainable solution'' and she met Robinson to discuss it further last week.

''For the first time, I've seen somebody putting up a potential community-oriented solution which requires Government backing but doesn't require the Government to do,'' she said.

Brownlee said the answer to the housing shortage was increasing stock, not funding trusts.

''You can't magic up a solution through some sort of trust structure or a clever rental idea. You have to have an increased pool; you have to have more houses,'' he said.

More than 100 Housing New Zealand (HNZ) homes would be back in commission by mid-July, another temporary village was on the way and the Earthquake Commission had just settled $23 million with the Christchurch City Council to repair its 282 damaged social housing units, he said.

Dalziel said Brownlee was being ''wilfully blind'' to the housing shortage and questioned how an increase in HNZ stock would support families that were not eligible for its assistance.''All the trusts in the world won't make a lot of difference unless we increase the pool available, and that's where our efforts are directed,'' he said.

''If he thinks all the problems are from those eligible for HNZ, then he is dreaming,'' she said.

Barbie   #73   12:18pm

 

It is with a letting agent and it is a lovely warm sunny (and yes with a roof)flat on the east side of town.

 

Reb   #72   12:17pm

 

@CW #63 and anyone else hit with enormous rent increases: call Tenancy Services on 0800 TENANCY (0800 83 62 62).

Landlords aren't legally allowed to raise rents above "market rates" and it's not likely that a $200 a week increase is the market rate. The Tenancy Tribunal has the power to overturn that kind of increase!

 

T   #71   12:08pm

 

Our landlord didn't renew our tenancy said they were selling our property, a week after we moved out they readvertised the property at a rate of $70 a week extra than what we were paying!

 

Mick   #70   12:07pm

 

Got to feel for the people of Christchurch, they have the moron Brownlee as their MP on top of everything else, talk about burying your head in the sand. The example set by the ruling party says it all though, you can behave any way you like so long as you aren't breaking the law, no matter how immoral or unethical it is just take as much as you can to feather your own bed and forget about everyone else, they're just jealous of your greed. Fantastic way to run a society.

 

gc   #69   11:59am

 

Barbie, can you let me know if it has a roof!!!!!!!!

 

Kerry   #68   11:58am

 

I'm calling BS Barbie #65 claim that a friend of theirs can't rent their flat out. Unless it's an absolute dive they should have had plenty of people looking through even before the local housing shortage. Either they are doing something wrong with advertising, it is unlivable or you are telling porkies.

 

Barbie   #67   11:50am

 

I have friends that are trying to rent a 3 bedroom unit for $280.00 per week and have only had one person come and look at it. It has been on the market for 5 weeks. So much for the rental shortage. The media blowing it all up, I say.

 

Voter   #66   11:45am

 

@Claire #51....The rents have moved over the last 5 years!! I am now paying double what I was 5 years ago and only barely scrap by. I have used up all my savings just to feed, warm myself and get to work with all the price hikes in food, power and petrol...let alone the greedy landlords! This government is really milking the people of Christchurch and New Zealand just to keep themselves rich... Brownlee should get down here so people can actually show him what is happening but Oh No..he won't, neither will anyone else from the Nat party actually get out there to see how people live...the only person I know of actually doing any of this is Lianne Dalziel and the Labour Party..they actually get out there and see and do for the people...not sit in their comfy chair bleating out crap!! Time for another Protest on Brownlee's office I reckon!!

 

CW   #65   11:45am

 

"Rents have risen in Christchurch but if you compare them to the rest of the country, it's hard to say we are massively out of kilter" Get your head out of the clouds Brownlee! I'm currently paying $450p/w and have to move as my landlord now wants $650p/w. If a $200 rise in rent isn't "massively out of kilter," what kind of increase would be?

 

peetee   #64   11:41am

 

Why don't you publish the names of greedy landlords. Might make some of them think twice.

 

Richard   #63   11:33am

 

Greedy property managers are pushing up the rents. A friend of mine put her property in to the hands of a property manager. She was renting out a $340 a week but they said they could get her $450 she said no that’s unfair so it was rented out at $380

 

Bill   #62   11:33am

 

rjt#35...Heaven help us if Brownlee ever pulled off becoming PM one day of which would make Rob Muldoon look like a saint.

Brownlee reminds me of the Wizard of Oz or better put the man behind the wall working the machine. I do wonder if we click our shoes three times we will all end back in Christchurch on September 3rd, 2010 and this has all been a bad dream. :-)

 

Oliver   #61   11:27am

 

@Graham

Let the market work itself out, really? That's exactly how this situation has come to exist in the first place through supply and demand...

Of course not all landlords are like that, but greed definitely prevails for most of them.

 

Andrei   #60   11:26am

 

Essentially, Christchurch people only have themselves to blame, having voted this man back in...

 

Get Real   #59   11:21am

 

ChCh Mum #4. Short terms rentals are always more expensive than long term. Its a premium you pay for not having to commit for a longer period. I note the $700 includes power and phone - not such a bad deal, and hey, unfurnished is not so bad - saves you paying to store yours elsewhere.

 

John Spragg   #58   11:19am

 

Gerry is a member of parliament!!!! Therefore he is infallible!!!! Just listen to Gerry and you'll be right!!!

 

Mrs P   #57   11:16am

 

Our rent was put up $50per week the same week that the earthquake repair work started.

 

Ian   #56   11:14am

 

Don't be so hard on the landlords . (1) They are only selling a service . Everyone else accepts the going rate for whatever they sell . Why should landlords be different . (2) Landlords' insurance costs have rocketed in Christchurch - if they can get insurance . (3) Some rental properties are unhabitable because of the earthquake . This peoperties earn zero income. I'm sure most Christchurch landlords would rather not have had the earthquake .

 

what a blardy joke   #55   11:10am

 

So its the landlords turn to suffer the wrath of society? Despicable Insurance companies have left people homeless and increased premiums by 300% in some cases with hardly any comment? A rental price increase due to under supply is perfectly acceptable .... it happens in every sector of commerce where demand outstrips supply so get over it.

 

Amanda   #54   11:07am

 

I dont think anyone would argue with the fact that insurance and rates rises have meant an increase in rental prices in Chch. What us tenants do object to is capitalising on locals' misfortune and profiting from what has been a difficult city for everyone to live in the last 2 years. We have moved to an adjacent suburb, similar living situation, and have had to pay an additional $120 a week in rent. We are a married couple in our 30's and by no means wealthy, although on moderate incomes, but we have had to live on toast at times in the last few weeks. Theres covering your costs as a landlord, and then theres just plain taking advantage...

 

graham   #53   11:02am

 

Not all landords are greedy. My insurances have gone up my rates have gone. Other costs have gone up to. I put my rents up $10.00 for each property that still does not cover my increase in costs. I would say most landords have only moderatly put there rents as they value good tennents and would not want to rip them of. On the same token dont expect landlords to rent out house at a lost for those who cannot afford. I say let the market work itself out. And as for Brownlees remark I say he is on a differnt planet

 

David S   #52   10:59am

 

My landlord and his wife haven't put my rent up since 2006.

 

Claire   #51   10:45 am Jun 18 2012

 

Rents have barely moved over this last five years but of course where there have been small upward adjustments the media (1) highlight them as if they are the norm and (2) villanize all landlords.

Just get on with things and pay the rent! For some (not all) perhaps less purchases of certain substances and foods / drinks might help, or a visit to a budgeting service.

 

Billy the Kid   #50   10:40 am Jun 18 2012

 

Once again Mr " Blinkers" Brownlee in ' action'??

 

Paul McMahon   #49   10:37 am Jun 18 2012

 

@#40 Uninsured Renter: The temporary villages are open to you and your landlord can't (i.e. shouldn't) make you pay rent while you are living in one. However, to be eligible for the villages you need your landlord to verify that you will be moving back into their place once repairs are completed.

My advice is to sign the 6-month lease so that you have somewhere to go during repairs and somewhere to go back to.

 

Gail   #48   10:37 am Jun 18 2012

 

Is this man even real??? I wish he would walk out of Ilam once in a while and smell the wilted daffodils on the east side....and Dan B obviously lives in Ilam as well...whether landlords are charging according to supply and demand makes no difference if you aren't earning enough to pay the rent as is the case for many on the eastside who continue to pay multiple mortgages/rent/rates/food etc...I am appalled at the lack of charity/empathy in our community...oh wait thats right, every man for himself according to Gerry the WEALTHY politician......

 

Linwood   #47   10:36 am Jun 18 2012

 

Yea right! Our rent has just been increased by $80 per week!

 

nick   #46   10:32 am Jun 18 2012

 

he is correct, just have a look at trademe how many rentals avaliable, so many to choose,remember what happened with caravan village ...

 

james   #45   10:30 am Jun 18 2012

 

I'd be curious to know the number of rental properties Mr Brownlee owns.

 

Mrs J   #44   10:30 am Jun 18 2012

 

Dear UNINSURED RENTER - Tenancy Tribunal is the place to contact and find out.

 

T M L   #43   10:29 am Jun 18 2012

 

heard over the weekend of an out of town landlord going to check on an empty rental (can't be rented out yet because not fixed up) and found a family squatting in the garage. No idea of their financial situation, but not many people would set their children up in a strangers garage, in winter, if they had other choices.

 

happyfeet   #42   10:29 am Jun 18 2012

 

move to aussie guys, NZ is becoming a third world country. thats what the nats want, everyone to leave so they can import foreign slave labour to work for the minimum rate. that means more profits for them and their rich mates.

 

Dan B   #41   10:26 am Jun 18 2012

 

Sure there are a few taking advantage and there is anecdotal evidence of that but most are not and that's the reality. Brownlee is right. At the end of the day rentals are effected by supply and demand just like everything else is and as much as landlords would not be able to expect tenants to pay more than market rates when there is a rental glut, tenants need to stop expecting landlords to give them charity when rental supply is tight.

 

Uninsured Renter   #40   10:17 am Jun 18 2012

 

Can anybody help answer a few questions for me....I am in a rental property...I do not have any insurance...my home is about to undergo repairs which we are required to relocate for several weeks....Where do we go???? We have been told that the temporary villages are only for homeowners...we have been told that HNZ are charging market rents for their properties in Chch and the only short term accomodation out there is rentals that are awaiting EQC repairs themselves so we could move in for 1 week then be told to move out again or landlords are wanting at least a 6 month contract which does not suit us as we want to return to our original home...the question is...have we been told the correct facts about these so called places/agencies that are suppose to there to help????

 

former red-zone resident   #39   10:17 am Jun 18 2012

 

How about a cap on what landlords can charge? Sure it wouldn't solve the problem but it would at least stop some of the people gaining massively out of other people's misfortune. People are paying these huge amounts because that's all there is.

As Gerry said the problem is the housing shortage. However, there is obviously a rental problem with the ridiculous prices some landlords are charging; it's criminal.

After the February earthquake we had to move out of our red-zoned house and were lucky enough to find a rental property. Even then the prices were rising with the mass increase in demand but the supply hadn't changed.

 

William   #38   09:59 am Jun 18 2012

 

Gerry Brownlee is so out of touch. How has he come to this conclusion.

 

Cary   #37   09:55 am Jun 18 2012

 

While rents have increased so have costs - insurance up by 100% in some cases, CCC want to increase rates by 7.5%, and depreciation is no longer claimable so bear in mind landlord's costs have increased.

I'm not condoning those who are increasing their rents to take advantage of people's suffering but before you condemn ALL landlord's of taking advantage of people remember their costs have increased so rents must increase to cover this. Not ALL landlords are taking advantage of people the same as not ALL tenants look after their rental homes.

The housing situation isn't as bad as some make out either - plenty of talk of families with young children living in cars but no proof, people talking of no homes available to rent but TradeMe shows otherwise - yes they may not be in the areas you wish to live but we aren't living in normal times -for a while you may need to live in another area until things return to normal.

 

Antonia   #36   09:53 am Jun 18 2012

 

I have been forced to live with my parents because I couldn't stay at my rental because my lease was due to expire and the landlord was raising the rent by $100! - Brownlee you have NO idea - The government is so keen to say we don't have a poverty line! We do and its a big thick line that families are sinking under fast! This has gone on too long and something needs to be done rather than the problem being ignored!

 

rjt   #35   09:43 am Jun 18 2012

 

There is no doubt that rents have increased in Christchurch, out of kilter to the rest of the country.

The mistake is in thinking simplistically (which is being reinforced by the media in many ways) that it is landlords gouging or profiteering. I suspect that there are a few landlords out there making additional profit but the vast majority of landlords are pretty decent, ordinary people from what I've found and haven't increased rents on that basis.

Unfortunately rents are definitely going up because the costs of rental properties in Christchurch has exploded, with increases in rates, insurance, repairs not covered by EQC, etc.

Added to those increased costs the market effects of fewer rentals being available are pretty minimal but the overall financial squeeze on low-income renters is certainly making them suffer.

Brownlee has done around Christchurch over the years that National would never risk putting him into any seat that wasn't very safe and without having him high on the List as a backup for the electorate voters dumping him.

He is also clever enough to look after his own and this preserves his voting base. Unfortunately he seems to see himself as a future PM, which should be a truly terrifying prospect for the average kiwi - imaging his earthquake minister arrogance translated over the entire country...

 

Warren   #34   09:40 am Jun 18 2012

 

Come on Gerry - no housing crisis, rents are not expensive, next he will be saying that the EQC and private insurers are doing a terrific job. Who voted this guy in - oh, that's right ILAM.

 

PW   #33   09:38 am Jun 18 2012

 

Not only are rents going up - but the quality of rental properties out there is pathetic .... I looked at some that I would have to really stretch to afford and they were absolutely freezing, not to mention dirty. Mr Brownlee obviously needs to get his head out of the sand.

 

Missy   #32   09:38 am Jun 18 2012

 

Rents have gone up, try renting with a dog almost impossible. We ended up buying again because we couldn't find anywhere suitable where they would let us have a dog.

HNZ homes are only good for those who qualify what about the rest of us who work for a living?

 

edward   #31   09:35 am Jun 18 2012

 

According to Mr Brownlee, there is no housing crisis either. We don't even have to ask "what world is he living in?" - it's obviously not in the 'real world'.

 

Karyn   #30   09:31 am Jun 18 2012

 

Browwnlee,, get your head out of the clouds,.Is getting bad here. Another family I know has been given eviction notice as landlord (who lives in nelson) has decided can make more renting out house one room at a time.This is happening all over town. Families that stuck it out thru everything being turfed on the street.Went with her to look at some places.I wouldnt put a dog in them yet rents ranged from $500 to $800 a weeks. Houses where old,cold,damp and full of cracks.Not only Brownlee but our council needs to pull there heads out of the sand before families start dying from living in sub-standard and third world housing or cars,or tents ect.

 

David Lintock   #29   09:31 am Jun 18 2012

 

"However, Brownlee believed the answer to the housing shortage was increasing stock - not funding trusts.

''You can't magic up a solution through some sort of trust structure or a clever rental idea, you have to have an increased pool. You have to have more houses,'' he said."

Sounds like Gerry is starting to talk some sense for once.

 

p   #28   09:27 am Jun 18 2012

 

Well we are having trouble getting tennants! We have just had to drop our rent by $40 so it is now in the low $300's for a 3 beadroom house? This is a recently redecorated character house with fire, heat pump and little earthquake damage. Yes it is in the red zone but only due to its land and there is no signs of the property being settled any time soon. I know alot of people have had to put there rent up but this for many is the onset of other things e.g insurance rates, property manager fees etc all going up.

 

S   #27   09:27 am Jun 18 2012

 

Gerry Brownlee is so out of touch it is comical. What a fool. How on earth di he come to this conclusion so quickly.

 

GC   #26   09:21 am Jun 18 2012

 

Gerry,

Please please please try wearing someone elses shoes. Rents have gone up. people are having to pay rates for two places, people are having to pay rent and mortgage's. Please get a grip on the situation and sort out your defunct EQC.

 

Adam   #25   09:16 am Jun 18 2012

 

I am not really interested in Gerry's opinions and I really don't see what they have to do with anything. Housing is too important to be a politicized issue run at the will of an antagonistic authoritarian autocrat. The numbers should tell the story and the research should have been done and publicized from day 1. Another D minus on your school report Gerry.

 

Mrs J   #24   09:14 am Jun 18 2012

 

This article makes me feel sad and tired. I have run out of energy after such a long time to be angry - what's the point. EVERYBODY I know has had rent go up between $40-$60 a week!Most if not all are living in rentals that have not even had basic emergency repairs done so are struggling with massive power bills in heatpump only homes. We moved here to take a step up and get ahead financially , instead we have become the working poor. We do exist and we are here waiting for help.

 

Jay   #23   09:12 am Jun 18 2012

 

Brownlee is useless! Its about time he stepped down so someone can do the job properly. he has no heart for chch!

 

Carol   #22   09:11 am Jun 18 2012

 

I, for a short time, had hope that someone was listening, and that with some foresight, some positive changes could be made for the City. Sue Robinson didn't proclaim to have all the answers but put herself up as no one else seems to have done anything for the last 2 years. And sadly, now Gerry says the trust has "some kind of clever rental structure" but he still downplays any issue. So she is clever?

The story states Lianne Dalziel has met with this lady. Again the Government squashes something the City needs. Lianne is in the Community gauging response - where is Gerry? If she believes this solution has wings, it should be allowed to fly. So much for anti-political influences in the rebuild of the City. Christchurch is not the country - those outside Christchurch don't care. We don't need special input, we need special solutions and action.

It's time for a by-election through a vote of no-confidence in the Government's abilities to lead the City. It's time that the Government realised they have bitten off more than they can chew and engage those who have suggestions, balls and foresight to assist us as we rebuild not just the CBD but our lives.

The right way forward is for all the agencies involved to partner up. They have relentlessly lobbied the Government on this issue but alas no one has listened till now.

There is a reason Gerry is now commenting on Homelessness and rental prices. Something has rattled his cage? I say good on Sue Robinson. I fear she'll give up and then who will listen? Surely not the Government!

 

red   #21   09:10 am Jun 18 2012

 

surely looking at bonds lodged with tenency services now compaired to bonds lodged 2 - 3 years ago would paint a very clear indisputable evidence of massive rent hikes.

in my area Average rents 2 years ago were $300 - $350 now the average if $400 - $500 and that is fairly average 3 bedroom 60's and 70's houses

 

sam   #20   09:04 am Jun 18 2012

 

The man is an embarrassment.

 

iel   #19   09:04 am Jun 18 2012

 

Trish #1. Welcome to the real world. The landlord is also dealing with EQC, trying to pay increased insurance and all the same increased costs that you are. So get over it. Basic economics is such that there are less houses to rent, therefore the demand is higher, therefore the prices go up. I learnt that in 4th form as it was then - now year 10. Mr Brownlee is actually correct in that the only thing that will improve the housing situation is having MORE houses, not fiddling with the rent etc etc.

 

Trevor   #18   08:56 am Jun 18 2012

 

My daughter is looking for a 1 or 2 bedroom flat to rent. She is a great tenant, fully employed, excellent references etc. I have seen properties she is looking at that I would not let my dog live in and with people lining up to take them at more than $250 a week in Linwood. She has no chance really other than to stay with friends or family. There is a crisis and it will only get worse as people try to move here for the re-build. Obvious to all including Jerry and John really but of course they fully support the supply and demand system as it makes them more money. What to do?? If it's only about the housing stock then we have to re-build houses first and fast. If it's about cost to landlords that they have to or choose to pass on then we have to either subsidise rent or raise wages. The current government's attitude is to do nothing. The 'market' will sort it all out and in the meantime more oeple will be crammed in with the rellies.

 

GerryW   #17   08:52 am Jun 18 2012

 

We have a small, older but clean and tidy, 3 bedroom property with heatpump and modern kitchen at $365 weekly that we had on trademe for three weeks with only two enquiries. An ad in the Press stating a three bedroom property in Beckenham etc at $365 a week received NO response at all. We did find tenants in the end but there was hardly a queue at the door and our rent has not increased dramatically over the last year. It makes one wonder just how selective people are being or whether the whole thing is a beat up by the media based on a few very unfortunate people who are having genuine problems and the obvious examples of rapacious landlords who may well be in the minority. We lost our home in February last year and have been renting and recently had to move. We negotiated over $100 off the asking rental of a property we were interested in ...

 

Things are different in Latte land?   #16   08:51 am Jun 18 2012

 

So why did he comment about council evicting tenants from unsafe council flats last week then? In Brownlee's world these people will be able to find affordable housing easy as...right?

 

So who provides the answers   #15   08:51 am Jun 18 2012

 

So Gerry has gone from saying there is no crisis to now investigating homelessness. He also comes out of the woodwork (pardon the pun) to make comment about prices. Coincidence that someone has come out with an actual idea of providing some solutions. Yes housing numbers are vital to the solution but in the meantime - while they are being built where do people live? Has Gerry got a magic wand to fix hundreds of houses that are needed overnight? If he has its time he used it right across the City.

 

Brighton Boy   #14   08:51 am Jun 18 2012

 

Landlords have been accepting yields of 5% for years, then paying expenses out of that! Its unsustainable. They did that because there was the depreciation tax advantage and possibility of capital gain. The government has removed one, and the headlights keep blinking at the other. If theres a capital gains tax watch the exodus from the rental market and then see how rents will increase! No earthquakes needed and nationwide! The government should be encouraging people to buy houses, not rent forever.

 

Jerry   #13   08:43 am Jun 18 2012

 

Agree with Brownlee on this one. The extra housing he is talking about will be available before this trust idea can be established. Also isn't the idea of subsidising 'profiteering' landlords through a subsidy is just condoning their behaviour? Not impressed with the anti Brownlee angle on this article when his solution does makes sense. How about an article criticising the management within Housing NZ who didn't chase up the insurance payouts sooner so that repairs could be done by now!

 

Darla   #12   08:27 am Jun 18 2012

 

Seriously Gerry Brownlee do you actually have no clue at all? You really should not be in the position you are in as one should actually care about the well being of others when in a position like yours. You tend to twist everything housing, earthquake and family related to suit the perfect little image you seem to want people to believe. A member of parliment represents the people, yet you show very clearly you are representing only one person (yourself) and really do not have any respect for Christchurch or the people. Guess what Gerry, we had Earthquakes, Rent Prices have sky rocketed, People are living in 3rd World conditions, and all you seem to do is turn your back on the reality of it all. Either wake up and face reality or step down and let someone who can actually be honest and do the job take your place, as the Job or lack of it you are doing right now is not only unproffessional but also having a major damaging affect on the people of this City!!

 

Lee   #11   08:23 am Jun 18 2012

 

Brownlee. Clueless. As a former woodwork teacher he'll know what a Bradall is. A boring tool.

 

nic   #10   08:21 am Jun 18 2012

 

Then explain why a house in Lyttelton that was $550 after the first earthquake is now $1050. If that isnt an astronomical rent increase I dont know what is.

 

Mum   #9   08:21 am Jun 18 2012

 

I cannot believe this - this man has no idea of the reality in Christchurch. I have now rented my home for a year, following the destruction of my own house in Feb. last year. My rental agreement was for a year; immediately that year was up my landlord raised my rent by $40. If Gerry Brownlee cannot understand, or see the actual reality of the situation he should go - as far as possible. And, Gerry, before you go, come and stand in my shoes for a while. Christchurch is in cris; face up to it. Some of us have had to face that reality; it is about time you did too.

 

BP   #8   08:20 am Jun 18 2012

 

He does make a valid point.

It is more houses that will solve the problem. Not an organisation paying the current inflated rents and then offering lowering costs to tenants with the help of a subsidy.

All this will do is continue to feed the price increases in rent as landlords keep getting the amount they want. The supply is stagnant, but the demand keeps increasing...of course rents will rise. Flood the market with new housing,repaired housing NZ properties and temporary villages and you will quickly see the prices drop back as supply exceeds demand.

 

m   #7   08:19 am Jun 18 2012

 

Once a rampant capitalist, always a rampant capitalist.

(i.e. There's obviously no problem here - people are making MONEY! Nothing else matters!)

Jeez Geeer. Thank heavens there are at least a few out there who understand the problem.

 

Juniper   #6   08:18 am Jun 18 2012

 

Yes there's no problem. That's why when I started looking for rentals there were only 9 in our price range across the whole section of the city that is feasible for us to live in (several suburbs). That's why when I looked further there were places on offer for $800-$1000 per week and in one bizarre case $2500 per week which is almost double our weekly income. Yeah, I'm glad there's no problem for Gerry; for us it's a huge issue.

 

Nicholas Lynch   #5   08:15 am Jun 18 2012

 

Olly Newland says building reasonably priced housing is a dying business, strangled by regulation:

"The real culprits who are driving up prices are the Local authorities: Councils and quasi-council organisations and all their hanger-ons whose habit of profligate spending requires ever more income. As a consequence, outrageous charges have to foisted on the consumer in order to keep the money rolling in. A builder friend of mine recently completed a development - a nice property, somewhat better than a group-house box, but not a mansion either.

The charges he had to meet - and pass on in the price - included:

- Building consent $10,000 - Resource consent $5,000 - Storm water approval $2,500 - Compulsory inspections $15,000 - Crossing permit $500 - Water meter $5,000 (actual cost of meter: $400)

On top of all that, the Council decreed compulsory double glazing, stainless steel nails, extra and approximately another $20,000 in sundry charges as inspectors and engineers visited and revisited the site many times and often with overlapping and conflicting demands.

In addition, all the slab, excavations, retaining walls and bracing were inspected twice and he was double-charged and often treble-charged as a result of a new regime in the latest building code.

All these charges added at least an extra $100,000 to the building costs - to which, naturally, must be added the developer’s margin, and the ubiquitous GST impost of 15% which added many tens of thousands of dollars on top of all the rest."

 

chch mum   #4   08:15 am Jun 18 2012

 

So this is bloody normal then!

http://www.trademe.co.nz/property/residential/to-rent/auction-485614178.htm

$700 per week UNFURNISHED!!!

 

Steve   #3   08:13 am Jun 18 2012

 

What would gerry know? Seriously, he & his cronies are so far out of touch that they all think the rebuild is going fantastically.

 

Maddie   #2   08:07 am Jun 18 2012

 

Gerry Brownlee has selected blindness when it comes to us in ChCh, he's out of touch and that goes from him all the way down his crazy ladder of morons

 

Trish   #1   08:06 am Jun 18 2012

 

Mr Brownlee needs to stop making ridiculous comments such as these and stop comparing Christchurch to the rest of the country. Look at the simple facts. Rental increases are between $40-$80pw, which is more than a days pay for a lot of people (those who still have jobs). Greed is driving landlords in Christchurch and Rangiora and shame on them! Taking advantage of the fragile state of Cantabrians in this climate!

Discussion

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