Fred Too
While not exactly on the pig’s back, state house tenants are better insulated from the soaring cost of living and rising interest rates than most. Their rent is capped at 25% of their income, which is a lot smaller proportion than many other people pay in rent or mortgage repayments nowadays.
So I wouldn’t blame the soaring rental arrears for state house tenants, sitting at $17 million, on the so-called cost of living crisis. I would say it was a perfectly predictable reaction to the promise of the current wokester boss, Andrew McKenzie, to never evict anyone.
The state housing agency is nowadays known as Kainga Ora (KO) and has ballooned in size, with over 3000 staff and a wage bill of $270 million. But even its own staff are horrified at the way it is being run. Rumours have spread that some tenants have just stopped paying rent because they know they will never get evicted.
In February this year Act finally found exactly what I expected, but still said it was a cost of living issue.
Written Parliamentary Questions answered by Housing Minister Megan Woods show that the average rent arrears owed to Kainga Ora by its clients has increased from $483 in November 2019 to $1901 in November 2022.
The total amount owed in rent arrears has increased from $2,320,228 in September 2019 to $16,989,285 three years later in September 2022.
The largest sum owed by an individual in rent arrears was $41,371 as of 30 November 2022.
So it would appear at least one tenant hasn’t paid any rent for years! Given there are about 70,000 KO tenants, the average rental arrears of $1,901 could be hiding the fact that a small minority of tenants are not paying any rent at all – just because they can get away with it!
But Act doesn’t see the obvious cause and just blasts the government for causing the rise in the cost of living.
Woods acknowledges in her answer that the primary reason rent arrears have spiralled out of control is because of “increases in the cost of living”. The fault belongs with her Government: they have consistently run deficits, borrowed and spent. New Zealand households are feeling the consequences through inflation and, until Labour reins in their spending, things won’t change anytime soon.
I call BS on that reason. I say a few tenants have cottoned on to the fact that they will never be evicted so are just thumbing their noses at KO! I’m sure those tenants could find some money for rent if they really wanted to. Nearly everyone else manages to pay their rent, and KO rent is not high.
This is what happens when there are no consequences for badly behaved tenants. They are effectively allowed to steal money from the rest of us.
act.org.nz/press-releases/kainga-ora-failing-to-collect-the-rent
