Property rents are continuing to steadily climb, although more slowly than the general rate of inflation.
Rents increased 4.1% in the year to September 2022, compared to 3.2% in the year to September 2021, according to Stats NZ.
By contrast, inflation rose 7.2% in the year to September, which means rental rates are rising more slowly than prices in the wider economy.
Nevertheless, tenants advocacy group Renters United is urging the government to introduce rent control measures.
Spokesperson Ashok Jacob told Newshub the government should place “an immediate freeze on rents as a short-term solution to deal with out-of-control rental prices, as well as longer-term controls on rent prices to ensure rent increases are justified”.
However Andrew King, the president of Property Investors Federation, an investors association, told Newshub that rent control made no sense given rents are rising at below-inflation levels.
“Many have the impression rental property owners are high-income people who don’t need to receive income from their rentals and can somehow afford to have their income capped,” he said.
“But the vast majority of rental property in New Zealand is provided by ordinary Kiwis owning one or perhaps two rentals who are trying to provide financial security for their retirement years.”
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