Morgan pushes long-term rental plan

Gareth Morgan’s Opportunities Party (TOP) wants to make it illegal to kick out a tenant for any reason other than lack of payment or damage to property.

Morgan’s policy would move New Zealand to a German-style rental system where tenancies are much more secure and long-term.

He would also introduce rental warrants of fitness and donate the government social housing stock to non-profit providers.

The key piece of the policy package is greatly strengthened tenancy rights through a radical rethink of the Residential Tenancies Act.

‘‘The reality is we are heading to a world where 60 per cent of the population are life-time tenants so we have to be protect the majority of people,’’ Morgan said. ’’It’s dealing with the reality that house price to income ratios are at 8-12, as opposed to 3 when I bought social housing a house in the 70s.’’

Lease terms would essentially be abolished, with the assumption that all tenancies are long-term. Selling a rental property would not be a reason to get rid of tenants any new buyer would need to take them on. Landlords would only be able to kick out a tenant for not paying rent or damaging the property. The length of notice that landlords must give to tenants would be based on how long the tenant had lived in the property.

A second plank of the policy is the donation of government-owned social housing to non-profit community housing providers.

Morgan said this would give the housing providers enough equity to invest in more social housing to keep up with demand, something he believes the Government is failing to do. He noted that housing costs were much more in line with incomes in Germany. ‘‘Having huge rent and house price inflation is not a necessary accompaniment to a successful economy.’’