Housing Minister Urges Renters to Negotiate Lower Prices

Housing Minister Chris Bishop has advised tenants to negotiate lower rental prices, as a recent decline in rental rates presents an opportunity for renters. In September, rental prices reached their lowest level in two years, prompting landlords to offer incentives to attract potential tenants. During a Select Committee meeting on housing, Bishop emphasized the importance of tenants taking advantage of the current market conditions.

“I’d encourage people to negotiate with their landlord. If they believe they can secure a lower rent, they should do so, as this will benefit their finances,” Bishop stated. He shared an example of a tenant paying $650 a week who managed to negotiate his rent down to $600 by highlighting lower-priced apartments available in the same building.

Bishop noted that the rising costs of rent have been a persistent issue in the country for the past two decades. He expressed that tenants now hold more power to negotiate with landlords, contrasting this with the previous situation where prospective renters competed intensely for available properties. “The days of lining up and fighting for a rental property are, for now, over. The power is in the hands of tenants. My message is simple: use it,” he said.

Construction Progress and Housing Commitments

During the same committee session, Bishop was questioned by Labour MP Kieran McAnulty regarding the government’s commitment to building 1,500 new houses by June 2027, including 550 houses in 2026. Bishop confirmed that the government remains on track to meet these targets, although he acknowledged potential delays in the construction sector.

“There will always be some slippage in timelines. We’ve received feedback indicating that Kāinga Ora is facing challenges with council consents, which can slow down projects,” he explained. McAnulty challenged Bishop’s optimism, presenting a report indicating that only 337 houses are expected to be delivered in the 2025/26 financial year, with 462 houses projected to be completed after the June 2027 deadline.

While Bishop recognized the risks associated with construction timelines, he emphasized that the government’s role is to provide funding and hold relevant parties accountable. He stated, “I don’t control the construction sector, but I will ensure that we do everything we can to facilitate the process.”

Support for Vulnerable Populations

In response to questions about the government’s approach to public housing, Bishop assured that the administration remains committed to supporting individuals facing housing challenges. He highlighted that vulnerable groups, including those with addiction issues, mental health challenges, and recently released prisoners, will continue to receive government assistance.

“There will always be people who the government should support. This is not up for debate,” he affirmed. Bishop stated that while the government has a role, it also intends to collaborate with organizations such as the Salvation Army and various community housing providers to enhance support.

Bishop expressed a particular interest in assisting recently released prisoners, who often lack stable housing and may reoffend due to their circumstances. “The most expensive form of social housing is prison. We should do more for those individuals,” he remarked, although he did not announce specific policies or funding related to this issue.

Additionally, Associate Housing Minister Tama Potaka addressed the issue of youth homelessness in response to a report indicating worsening conditions for this demographic. Potaka acknowledged the severe housing deprivation affecting various regions, including areas lacking youth transitional housing such as Rotorua, Napier, and Gisborne.

He noted that while government funding has been allocated to support homeless youth, challenges remain, including family disconnection and mental health issues. Potaka stated, “Providers are doing great work, and we are funding placements for young people, but we must continue to address these underlying challenges.”

With the housing crisis remaining a pressing concern for many, Bishop and Potaka’s remarks reflect ongoing efforts to navigate the complexities of housing policy and support vulnerable populations in need.