The Green Party says a move to bring back "no-cause" terminations for periodic tenancies is "a constant reminder to renters that they are at the whim of their landlord" while leaving tenants "on edge" about the housing security.
Earlier this morning, Housing Minister Chris Bishop announced several changes for renters and landlords with new legislation going to Parliament next month. The move effectively rolls back several changes made by the previous Labour government.
Bishop has called the changes "pro-tenant" as he argued the existing rules disincentive people from becoming landlords, stymies the supply of new rental properties, and therefore ultimately causes rents to rise quicker than they otherwise would.
He said: "We’ve heard from many landlords that, without the backstop of 90-day ‘no cause’ terminations, they were unwilling to take a chance on a tenant who may, for example, not have perfect references or a steady 9-5 job."
Meanwhile, Green Party housing spokesperson Tamatha Paul said the change would make the rental market worse for renters.
"The playing field is uneven and these changes to tenancy rules further tip the balance in favour of landlords," she said in a media release.
"Bringing back no-cause evictions will be a constant reminder to renters that they are at the whim of their landlord.
"It means constantly being on edge about whether you are secure in your home or not.
"Removing tenants’ right to renew their lease at the end of a fixed-term means that people will be moving houses every year.
"If we want renting to be seen as a long-term, viable option in Aotearoa, as it is in many countries with greater housing security, then we must make sure that renters can see their house as a home.
"I constantly hear horror stories about renters who have been kicked out for something as simple as putting blue tack on the walls and renters who have to pack up their whole lives and move around constantly.
Demands for rentals has jumped 30% in the last year. (Source: 1News)
"It completely unsettles people just trying to live their lives, and it can be distressing for children who are displaced from the communities they know and the schools they go to.
The Greens also used the policy announcement to mount an attack on Government ministers, saying: “We have a mega-landlord Prime Minister, and we have a Government made up of landlords. What we are seeing is politicians serving their own interests.
Paul added: "Today’s announcement has made it crystal clear that this Government is not pro-tenant but pro-self interest."
ACT 'celebrating' promise delivered
Housing Minister Chris Bishop said today: "The previous Government waged a war on landlords. Many landlords told us this caused them to exit the rental market altogether.
"It caused worse outcomes for tenants: rents up by $170 per week since 2017, the social housing waitlist increasing by about 20,000 families, and thousands of families living in emergency housing motels."
Government coalition partner ACT also issued a media release following the announcement. Party leader David Seymour said he was "celebrating the delivery of the party's coalition commitment to make it easier to end tenancies."
"ACT is proud to be part of a government that understands the key to helping renters is lifting supply – when more homeowners are enticed to rent out property, competition brings down prices and renters have greater options and negotiating power," he said.
“Under Labour, renting out a home was a risky proposition. The rules made it difficult to end a tenancy, so anyone who took on a tenant risked being locked into an arrangement while their own financial or personal situation changed.
Seymour suggested, alongside the interest deductibility rule changes, it was a "miracle anyone rented a home under Labour".
“Landlords want to make a fair return on helping another person with a place to live, and tenants want a choice of affordable places to live.
"But when we skew the delicate balance of rights and obligations between landlord and tenant, both sides suffer.
“Labour skewed the balance with their divisive belief that attacking landlords would somehow help renters.
National's Bishop holds the portfolios for Housing, Infrastructure, RMA Reform and Sport and Recreation. (Source: Q and A)
"They assumed the worst of Kiwis who just hope to make a fair return on helping another person with a place to live, and they failed to empower renters with greater choice in the market.
“The challenge for lawmakers is to ensure fairness while making it easier for landlords and tenants to make mutually-beneficial agreements. We’ll never achieve this by pitting one side against the other.”
Investors association 'welcomes changes with caution'
The Auckland Property Investors Association expressed optimism about the restoration of the no-cause terminations to "the landlord's toolkit", while "cautious about the finer details" of the final legislation.
It said "restoring the old fixed-term tenancy rollover rule will afford landlords equal control alongside tenants, fostering a more balanced rental relationship.'
"The proposed return of the 90-day no-fault termination to the landlord's toolkit is indeed a significant development in the rental landscape," a spokesperson said.
"While [the association] acknowledges the potential benefits of such a change, it remains cautious about the finer details that will emerge with the release of the amendment bill. It's important to note that while these changes have been announced, they are not yet law.
"Details could evolve throughout the legislative process, and the projected implementation date of late 2024 means there is still time for adjustments."
While the legislation will go to Parliament next month, the new rules are not expected to come into effect until early 2025, according to the Government.
What are the changes?
The changes include re-introducing 90-day "no cause" terminations for periodic tenancies, meaning landlords can end a periodic tenancy without giving any reason.
Landlords currently only have the right to end a periodic tenancy if they wish to move into the home, if it will be sold or renovated, or if the tenant hasn’t been paying rent.
For fixed-term tenancies, the ability for landlords to end a tenancy, at the end of the term, without giving a specific reason will also be re-introduced.
For periodic tenancies, notice periods for ending a tenancy are also changing.
Landlords will now only need to give 42 days' notice for ending a tenancy, instead of 63 days, if they want to move themselves or a family member into the property, or if the tenancy agreement notes the property is usually used to house employees, and they want to move an employee into the property.
Landlords will now only need to give 42 days' notice for ending a tenancy, instead of 90 days, if the property is subject to an unconditional agreement for sale requiring vacant possession, according to the Government.
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