Pensioners squeezed by looming 50% rent jump in Reefton

Reefton pensioners are facing rent hikes of more than 50% as council lifts them towards market rates, leaving some residents considering selling possessions and cutting essentials to cope.

By Charlotte Mulder

Single-bedroom council units in the West Coast town northeast of Greymouth will jump from $165 to $250 a week from July - a 52% increase - as Buller District Council shifts to a cost neutral model.

Dave Curtain was considering selling his car, turn off his heating and cut back on food after learning of his rent increase.

“My first reaction was, ‘sh*t, that’s huge’,” he said.

“We can’t afford it.”

He’d lived in the unit for four years, but now fears the rising costs could force major lifestyle changes.

“I’ll probably have to sell my car,” he said.

Residents had hoped the increases would be phased in over time.

“We thought with a bit of respect they’d just pop it up a little bit at a time, but they want to do it all in one day,” Curtain said.

The Buller District Council said it kept rents below market rates for as long as possible, but has now moved to a cost-neutral model that no longer relied on ratepayer subsidies.

Mayor Chris Russell said the council still needed to maintain the homes to an acceptable standard.

“To keep the houses up to the standard they need to be in, the model has to work and not be heavily subsidised by ratepayers,” Russell said.

The changes come as Reefton faces increasing housing pressure, with new mining projects expected to bring an influx of workers to the West Coast town.

Property Brokers agent David Faulkner said West Coast rents were still relatively affordable compared to other regions, but some pensioners said the increases would consume nearly half their weekly income.

Age Concern NZ said the issue reflects growing financial pressure on older New Zealanders nationwide.

Chief executive Karen Billings-Jensen said when fixed costs rose sharply, pensioners were often left cutting essentials.

“When rent or rates go up, the only wiggle room you’ve really got is food,” she said.

That pressure was evident at a public meeting on Tuesday, where frustrated residents raised their concerns directly with the mayor, warning the July increase — landing in the middle of winter — could not come at a worse time.

The council said it had organised drop-in sessions with the Ministry of Social Development to help residents access any additional financial support available.

For now, many are trying to work out how to absorb the extra costs — including whether long-time possessions, like Curtain’s trusty Nissan, may have to go.