The government’s decision to reform the Residential Tenancy Act is a “knee-jerk and uninformed decision,” says National’s Housing spokesperson Judith Collins.
Mrs Collins said Housing Minister Phil Twyford was being naïve in thinking that price controls would stop tenants paying more.
“By limiting rent increases to once a year, landlords will be forced to raise rents higher and sooner, meaning tenants will actually be paying the same or more in the long run,” she said in a statement.
“It is not clear whether the bond can be raised at the same time as the single rent increase – so even more costs could be put on the tenant.”
Landlords were also put at a disadvantage with an increase in the length of notice required to be given to tenants, according to Mrs Collins.
1 NEWS understands landlords will now be allowed to limit rent increases to once a year, up from six months. (Source: Other)
“If a landlord now wants to sell their property, they will have to wait 90 days, meaning settlements of sales will be extended by double,” she said.
“But if the tenant leaves the property before the 90 days is up, the landlord will end up with an empty house waiting for a buyer.”
“It is important to strike a good balance between landlords and tenants but so far Mr Twyford’s decisions seem to result in both parties losing out,” she said.
Mrs Collins accused the government of adding to the weekly bill of New Zealanders.
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