Warning landlords may sell

AUCKLAND: Officials are advising that landlords may choose to exit the rental market and opt to put their property on Airbnb as a result of new minimum rental standards.

They have also warned Housing Minister Phil Twyford lowquality rental properties were more likely to be sold off, as it would be too expensive for landlords to comply with the rules.

Act leader David Seymour said it was concerning that, in the middle of a housing crisis, the Government had decided to make it harder for those providing housing.

On Sunday, Mr Twyford announced that from 2021, all private rental homes would be required by law to have a heater that could heat a main living area to 18degC.

Kitchens and bathrooms would be required to have extraction fans or range hoods and the minimum level of ceiling and underfloor insulation would need to be at least 120mm thick, or meet the 2008 building code.

Mr Twyford said it would cost about $7000 to upgrade an average threebedroom home which did not meet the standards.

Both National and landlord lobby groups were quick to say the new rules would end up meaning renters would pay more.

A regulatory impact statement, written by the Ministry of Housing and Urban Development, shows officials were warning Mr Twyford this would be the case.

‘‘It is likely that landlords will increase the rent they charge a tenant to offset, to some extent, the costs incurred from upgrading their properties, or choose to sell their properties.’’

‘‘Alternatively, some rental properties may be removed from use in longterm accommodation altogether, and switched into shortterm accommodation, for example, Airbnb.’’ — NZME