Record high rent prices

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Renting in Marlborough has become even harder as prices hit record highs.

In the latest Trade Me Property Index report, the median rent price in the region for December 2017 stood at a record $423 a week, above Christchurch which was at $400.

First National Marlborough senior property manager Mariette Knudsen said the lack of availability was a big reason behind the jump in prices.

The current median was a 12.7 per cent increase from December 2016 when the median was then a record at $375 a week.

‘‘I believe demand exceeds supply and that has been the situation for about a good 12 to 18 months. Rent has gone up, I don’t know if it’s 12 per cent, I haven’t done that calculation yet, but they have gone up.

‘‘We find that we have a shortage of listings and it’s sad because some people are absolutely desperate for houses,’’ she said.

Knudsen said she thought the average three bedroom house in Marlborough stood at between $370 and $380 a week.

Other players such as Airbnb also had an impact on rental prices, Knudsen said.

As of January 20, there were 53 Airbnb listings in Marlborough compared to 20 rental listings on Trade Me.

‘‘I think some of those homes that are Airbnb would have once been part of the rental stock so that’s reduced availability,’’ Knudsen said.

Another reason for the increase in the median rent price were additional costs faced by landlords, including their insurance premiums since the 2016 earthquake, she said.

‘‘So the rent increases are more than justified I believe,’’ Knudsen said.

Knudsen said she found it ‘‘hard to understand’’ why more government regulations were set to be brought in while there was an acute shortage of rental accommodation.

Current trends were expected to continue for the foreseeable future and now was a good time to be a landlord.

‘‘I believe that there will still be

a shortage of rentals for some time to come.

‘‘I believe there will be some good opportunities for landlords and investors basically and most of our investors are really responsible people,’’ Knudsen said.

While there had been an increase in prices, the Trade Me figure may not be an accurate representation of the Marlborough rental market, Knudsen said.

‘‘Rent has definitely gone up but I’m not quite sure what the percentage is but I believe we’re still in the catch-up mode in comparison to other areas [in New Zealand]. I have children that live in other parts of New Zealand and they have had significant increases in the past 12 months, so I would be a wee bit reluctant to hang my hat entirely on the Trade Me figure,’’ Knudsen said.