Renters re-emerge to frozen rents

New rental figures show renters are starting to look around again after very much staying put during lockdown last month.

Trade Me Property spokesman Aaron Clancy said over April the number of rental properties available on the website dropped 26 per cent compared to a year ago, and the number of inquiries fell 55 per cent.

But now renters and landlords were beginning to re-emerge, Clancy said.

‘‘After spending seven weeks at home, many Kiwis will have had plenty of time to rethink their current living arrangements.

‘‘So far in May, we’re seeing a lot of activity on-site with listings of rental properties shooting back up when compared to April, and plenty of potential tenants coming on to search for a new home.’’

Rents have grown strongly in the past two years but with the Govenrment’s six-month rent freeze imposed in late March, experts are predicting that trend will slow significantly.

Trade Me’s national median weekly rent was up 4 per cent in April to $520, due to the index being based on a three-month rolling average.

But it was too early to see the impact of the rent freeze announcement, Clancy said.

‘‘The rental price freeze will bring a sense of relief to renters that are facing many unknowns. But it may be a concern for landlords with uncertainty around their own costs,’’ he said.

‘‘Ongoing discussions on potential council rate increases will be making some landlords nervous.’’

With landlords unable to issue notice to terminate tenancies for the next few months, and uncertainty around the economy, Clancy said there may be a dip in the supply of rental properties.

However, the rise in short-term accommodation could help to balance supply.

In Wellington, the median weekly rent hit $575, up 8.5 per cent on April last year.

After modest growth over the last few months, Auckland rents were the same as March at $580 a week, although they were up 4 per cent on the previous year.

Both supply and demand were down during April.

Regionally, most parts of the country had rental growth, with Manawatu/whanganui, Otago, Southland, and Hawke’s Bay enjoying double-digit percentage increases on the previous year.

In Manawatu/whanganui, the median weekly rent reached a record-breaking $420, up 17 per cent on April last year.