Improving cold, damp rentals

This Issue This is a part of the Existing houses feature

By - , Build 147

Too many people live in cold damp houses, which are making them sick. Improving the quality of houses in the rental sector won’t be easy, but it needs to be a priority.

A STRATEGY IS NEEDED to get the disparate laws and bodies governing the rental housing sector in New Zealand working together. This is according to a recent report by Beacon Pathway.

Beacon resource: Performance of rental housing compiles existing knowledge about the state of rental housing in New Zealand, the laws and bodies that govern it and the potential for interventions for improvement.

It draws on legislation, statistics on social and rental housing in New Zealand, research into housing performance, social and rental housing, the health impacts of housing and reports from government agencies.

Three-way dynamic to think about

Any consideration of rental housing needs to involve the rental dynamic – the interplay between house quality, the tenant and the landlord.

These are interdependent, and actions and changes in one determine outcomes for the others.

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Poor housing affecting wellbeing

Home heating, energy costs and fuel poverty are key housing issues with health implications. Cold, damp, poor-quality housing has been linked to a range of physical symptoms, diseases, injuries and high winter mortality, as well as impacting on mental health, educational attainment and social status.

The links between poor-quality housing and New Zealand’s high incidence of child poverty are well recognised.

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Tenants often most vulnerable

The day-to-day consequences of poor housing stock affect the most vulnerable in our society – impoverished families, children, the elderly and disabled.

Approximately half of New Zealand’s children under 5 years and 21% of adults over 65 live in rented houses. Both groups are more vulnerable due to their susceptibility to illness and health issues caused by environmental factors. In addition, 50% of households in the private rental sector are financially stressed, spending more than 30% of their household income on housing.

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Rental contracts discourage improvement

At the same time, rental conditions in New Zealand are restrictive compared with international norms. Here:

● there are shorter lease terms

● tenants can be given 30 days notice on almost any condition

● tenants have little opportunity to make minor alterations to the home.

Consequently, tenants have little incentive or ability to improve the condition of their rental home. Housing insecurity undermines opportunities for renters to ask landlords for repairs and maintenance, let alone performance upgrades.

Private landlords own 85% of rental housing. Research to date characterises these landlords as ‘mum and dad’ investors who don’t see themselves as running a rental business in a service industry. Few private landlords invest in regular maintenance or undertake whole-of-house upgrading.

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Some steps already taken

There have been several interventions in recent years:

● In 2014, Auckland, Tauranga, Wellington, Christchurch and Dunedin trialled the warrant of fitness (WoF) developed by the University of Otago, Wellington, and New Zealand Green Building Council. Of the 144 houses assessed, only 6% passed.

● A WoF scheme designed to ensure all houses meet a minimum health and safety standard was trialled by Housing New Zealand in 2014.

● A new programme was launched that certifies home performance advisors to provide a full assessment, diagnosis and recommendation to homeowners, landlords and tenants suffering from cold, damp or resource-hungry homes.

● University of Otago graduates started the Rate My Flat enterprise to support the upgrade of Dunedin student rental accommodation.

● Launched in 2010, Homestar, New Zealand’s only residential rating tool, helps landlords and tenants share information about housing quality.

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Time for a strategy and new approaches

Rental housing exists in a complex legislative and institutional environment:

● There is no single central government agency responsible for housing quality.

● Multiple government ministers have a role in rental housing.

● Formal rules governing rental housing are spread across different pieces of legislation.

● Roles are played by several agencies within central and local government.

A New Zealand rental housing strategy for social housing would improve planning and management of this critical national asset.

Beacon recommends proactive trials to find new ways to improve rental outcomes. The council trial of a WoF is a recent example of active learning and sharing of lessons. Social housing offers a good trial space for pilots and demonstrations since government is involved in all parts of the rental dynamic.

New business models are also needed. It should be easier for landlords, tenants and other stakeholders to get independent advice and act on it to improve rental outcomes.

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True costs would highlight need to improve

There is a lack of robust data about the rental housing sector, and existing information is scattered:

● BRANZ and Statistics NZ hold some rental house condition survey data.

● The Ministry of Social Development holds information on tenants receiving the accommodation supplement.

● The Ministry of Business, Innovation and Employment holds bond information.

We lack a comprehensive analysis of the true costs of New Zealand’s poor housing on taxpayer funds, particularly on health, wellbeing, productivity, water and energy resource efficiency and affordability. This would provide solid evidence of the value of upgrading the performance of our rental housing stock.

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For more

To read the report, visit www.beaconpathway.co.nz/existing-homes, then Rental housing.

Download the PDF

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Articles are correct at the time of publication but may have since become outdated.

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