The Market Rents Housing Experiment
‘By April 1998 71% of applicants for food parcels at the
Auckland City Mission cited market rents as the reason for
applying.’
‘A main contributer to the affordability
problem is the reliance on the market as the most efficient
means to allocate housing. The move to market rents has had
a serious impact on HNZ tenants as they pay significantly
more for their accommodation than under income-related
rents.’
Taking Stock! A report on the problems and
possibilities for housing policy in New Zealand. New
Zealand Council of Social Services, October 1999
"Demand
for Salvation Army food parcels fell when HNZ rents were
frozen in 1996. But when the freeze was lifted in July 1997
demand for food parcels rocketed. The foodbank gave away
1,663 parcels in the first six months to 1997. However the
first six months of 1998 brough a 53% leap to 2,540
handouts."
Manakau Courier 1 September 1998
On the basis of market income, 73% of state housing tenants are poor, but only 27% of private renters. While net transfers (including the Accommodation Supplement) are more effective for state tenants, their final poverty incidence is still double that of private renters (Below the Line: An Analysis of Income Poverty in New Zealand. R Stephens, P.Frater and C Waldegrave)
‘By April 1998 71% of applicants for food
parcels at the Auckland City Mission cited market rents as
the reason for applying.’
‘A main contributer to the
affordability problem is the reliance on the market as the
most efficient means to allocate housing. The move to
market rents has had a serious impact on HNZ tenants as they
pay significantly more for their accommodation than under
income-related rents.’
Taking Stock! A report on the
problems and possibilities for housing policy in New
Zealand. New Zealand Council of Social Services, October
1999
“According to the Salvation Army, rent costs for
Housing New Zealand tenants have risen 106% since 1992.
Inflation has only gone up 12% and private rentals by 23%
ove the same period. Major Campbell Roberts described these
facts as condemning National’s ‘big housing experiment which
has been so disastrous.’
Salvation Army in The
Christchurch Press, 29 August 1999
“A quarter of
poor households pay 50% or more of their income on rent; 40%
of households surveyed were overcrowded; and 49% had been
unable to provide a meal for their families at least once in
the three months befor the survey was published because they
could not afford to.”
Anglican Social Services Family
Centre, September 1999
“The market rents policy has seen
state house rents double in some areas of Porirua in the
five years between 1991 and 1996.”
Kapi-Mana News, 6
October 1998
“Most (South Auckland) families are paying
between 45 and 60% of their household income in rent. If
you are getting $350 a week, that leaves you $100, $150 to
pay for everything else. The way that people have coped is
by sharing resources, by crowding in.” Research by A
Johnson, Manukau City Council cites the introduction of
income related rents in 1991 as the catalyst for
overcrowding in South Auckland.
The Listener, 2 October
1999
“We see the proposed changes as a very positive and
significant step towards addressing the enormous housing
problems for low income earners. It definitely signals to
us the Government’s intention to put social objectives
before profit.”
“Our research shows that housing is such
an important part of people’s lives that when it is
unaffordable, their quality of life suffers. Social Service
providers then have to deal with the detrimental effects of
high housing costs on families and individuals.”
New
Zealand Council of Social Services spokesman Major Campbell
Roberts, NZPA, 23 May 2000
Rents for the poorest families
in the country have risen at almost 10 times the rate of
inflation since the Government moved to market-related
charges.
Statistics New Zealand figures show the average
rental for Housing New Zealand and council homes has
rocketed 106 per cent since 1992. During the same period,
rentals from private landlords rose 23 per cent, and the
consumer price index rose just 12 per cent.
New Zealand
Herald 15 May 1999
“New Zealand Council of Women has
consistently lobbied for the reform of a market rental
regime which allowed the cost of state rentals to rise to a
level which could claim 50% of a tenant’s income.”
“We
believe there is a correlation between high housing costs
and the rising incidence of poverty in this country and
therefore we see this announcement as having a significant
impact on reducing the hardship experienced by low income
people.”
New Zealand Council of Women president Barbara
Glenie, NZPA, 23 May 2000
“New Zealand's decade-long
epidemic of the deadly meningococcal disease is being driven
by household crowding, says a major study. The three-year
investigation is the first of its kind in this country to
look at the risk factors for meningococcal
disease.”
Ministry of Health, ERMA research: New Zealand
Herald, 11 August 2000
“Monte Cecilia staff and
volunteers, who provided housing advice as well as emergency
accommodation, were greatly relieved the Government was
committed to addressing the injustices facing those in
housing need, Sister Mary Foy said.
"Before November we
had been in a downward spiral," she said.
"We have
witnessed the devastating effects market rents have had on
low-income households in the past, as they have had to pay
their rent and not feed their families.
"We want to
thank the Government because at long last something is
happening to benefit the homeless."
Sister Mary Foy,
Congregational Leader Auckland Sisters of Mercy & Monte
Cecilia Emergency Shelter on hearing news that
income-related rents would replace market rents on state
houses
New Zealand Herald, 10 April 2000
"South
Auckland residents are paying market rents to live in
rat-infested, unhygienic and overcrowded state houses. A
report for the National Health Committee finds that many
Otara residents, particularly those in the area's 2200 state
houses, are plagued by rats and cockroaches.
It also
says the residents are living in cold, damp homes that are
poorly serviced.
The Action on Housing and Health in
Otara report says poor housing is a significant factor in
the region's health problems.
A child health report
released last month partly blamed poor living conditions for
the deteriorating health of South Auckland children.
The
Housing and Health report says many old Housing New Zealand
homes are damp and mouldy, with bare floors, no curtains and
little ventilation.
New Zealand Herald 1 September
1999
"A new report entitled Towards Wellbeing in Waitakere
documents a feeling among West Auckland community groups
that people on fixed incomes are the lowest socioeconomic
groups and are worse off. "
The Waitakere City Council
Study exposes concerns about housing, market rents and
issues forcing children to change schools often as families
move.
"The high cost of housing in the Auckland region
comes on top of other pressures from being on a stretched
income and many Waitakere families are not coping."
"Many
people feel that until market-rent policies are dropped,
access to affordable housing really won't
improve."
"Market rents are a key trigger to all these
other problems that we're dealing with.”
State Housing
Action Coalition spokesman Peter Hughes
New Zealand
Herald 1 September 2000
It was an obvious anomaly that the
most disadvantaged in our society were expected to pay
market rentals. In many cases the Council was aware of
people paying 30-50% of their income in rent. This left
them with much less money to feed and support their
families… We believe that this policy has had a very
detrimental effect on the lives of the state house tenants
and their families.
Auckland District Council of Social
Services – submission on the Housing Amendment (Income
Related Rents) Bill
In the current climate where market
rentals and profit dictate conditions under which our client
families live,…we have noticed a significant increase in
poverty among these families, and consistent hardship, not
only in accessing suitable accommodation, but also in their
capacity to provide for their basic needs.
An emergency
housing service in Auckland – De Paul House – submission on
the Housing Amendment (Income Related Rents) Bill
"Our
Emergency House is being overwhelmed by ex-Housing New
Zealand tenants that have moved out of their tenancies
because they could not sustain paying the high market rents.
Many families are faced with rental arrears and
homelessness…. Families paying ‘market’ rents are suffering
grievously in other areas of their lives and often cannot
afford to feed and clothe themselves."
The Monte Cecilia
House Trust, an emergency housing agency based in Auckland –
submission on the Housing Amendment (Income Related Rents)
Bill
"It is well documented that inadequate accommodation
and overcrowding have serious consequences for the well
being of our communities. This was recognised in the Roper
Report on Violence, which saw the provision of good
affordable housing as a significant factor in the reduction
of crime.
Under the market rent regime, it seems that
low-income families often have to choose between accepting
poor living conditions and making cutbacks in other areas,
such as food, doctor’s bills and school fees."
Maori
Legal Services – submission on the Housing Amendment (Income
Related Rents) Bill
The study found six factors associated
with increased risk of meningococcal
disease, the most
important being household crowding which increased
the
risk of contracting meningococcal disease by more
than 10 times, in the
more extreme situations. New
Zealand has been experiencing an epidemic of
meningococcal disease, mainly serogroup B, since mid-1991.
Last year 505 cases of meningococcal disease were
reported, including 23 deaths. Rates are also consistently
higher in the young, and those of Maori and Pacific Island
ethnicity.
In New Zealand, 74.6 percent of occupants
living in crowded conditions are
Maori and Pacific
Island people, yet together these two groups form
20.1
percent of New Zealand's population.
Ministry
of Health and New Zealand Health Research Council Study,
August 2000
It may be coincidence but certainly the
meningococcal epidemic took off about the same time that
market rents came into force.
Professor Diana Lennon,
Rheumatic Fever Project coordinator in the Listener 2
October 1999
A report on Pacific Island housing found that
Pacific Island households have an average of 4.3 people
compared with 2.8 people in other households.
New Zealand
Herald 1 September 1999
Nearly one in 100 Pacific Islander
infants and one in 250 Maori
contract meningococcal
disease compared with one in 2000 European
babies.
Auckland Healthcare in the New Zealand Herald 14
June
2000