The majority of renters in New Zealand are in financial hardship despite Government support, with some going without essentials to survive, according to a new survey.
Of the 1983 people surveyed by Renters United between April 10 and 20, 94 per cent said they were in private rental housing.
It found that two out of three renting households saw their income drop by more than a third, and more than half of the households were worse off despite Government support, Renters United spokesperson Anna Mooney said in a statement.
“Despite this hardship, few landlords have agreed to reduce or defer rents," she said.
While 69 per cent of those surveyed felt their circumstances warranted a rent reduction, only 5.9 per cent received one. A further 2.1 per cent of respondents said they had received a rent deferral, requiring them to pay back the difference at a later date.
“The findings show that lockdown has exacerbated renting situations that were already unaffordable,” Ms Mooney said.
Before the nationwide lockdown, introduced on March 25, four out of five respondents said they had been paying unaffordable rents at more than 30 per cent of their income.
“The rent freeze has prevented a worse situation. However, rents were at record high levels when frozen, and many renters’ incomes have dropped dramatically. Government support is not enough to bridge the gap."
Ms Mooney added that mental and physical health of renters have also declined as a result, with half reporting that their renting situation had negatively affected their mental wellbeing.
Nearly two in three renters also reported feeling worried or scared for their financial future, she said.
Some renters are going without essential items to make ends meet, with one respondent writing, "My flatmates... will need to discuss whether we save our money for food or pay it to our (much wealthier) landlord.”
"I am paying rent in full, but eating more two-minute noodles and going without hot showers," another added.
Other respondents said they were borrowing or digging into savings, with one in 10 participants believing they would end up in debt to their landlord.
"The Government needs to act urgently to assist renters," Ms Mooney said.
"In the short term, they should provide income support for renters in hardship, and give tenants flexibility to leave unaffordable rentals. Medium term, they should extend the freeze on rent rises and the ban on evictions to give renters security at a very difficult time."
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