Property investors 'won't all hit insulation deadline'

Wednesday, 29 May 2019

Investor Graeme Fowler said there was 'no way' all rental properties would have had the work done in time.

A shortage of insulation is set to interfere with investors' last-minute attempts to get their properties up to standard.

Insulation is compulsory in all rental homes, except where installation is impossible, from July 1.

But some investors are encountering problems as they try to meet that deadline.

In December, it was estimated that 220,000 rental properties were still not properly insulated.

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One investor, Les Gorvett, said he had wanted to do the insulation of his property himself because he was a competent DIY-er.

'At Bunnings last week, I am told that I will almost certainly not get insulation before July 1 because there is a nationwide shortage.

'November through April was really hot, and while the months were ticking away and the deadline approaching, I decided to wait for some cool weather before getting into those hot ceiling spaces.'

Insultech Insulation owner Stephen Nicholson said anyone who had left insulation installation until now would have no hope of having it installed by the deadline.

'The industry is flat out.'

He said a lot of investors had left it until the last minute and suppliers were saying there was a four to eight-week wait for product.

'That's the product alone, for the actual people to install it, we're part-way into August now with bookings and we're not the only company like that.'

Bunnings merchandise manager Andrew Haliday acknowledged supplies were tight.

'Our stores are currently receiving product drops of insulation at least twice weekly and although availability is limited due to high demand, we are working really hard with our supplier to increase product deliveries to ensure customers can get insulation when they need it.

'As always, our team is here to help and we encourage customers to speak to their local store team.'

But Mitre 10 said it had stock.

Chris Fisher, acting general manager, source to shelf, said: 'Mitre 10 stores across the country are well-stocked with insulation, particularly Bradford Gold glass wool and Expol products, that are ready to fulfil orders of those wanting to get their insulation sorted this month.

'While the changes to the Residential Tenancy Act have been well-publicised, we knew there would be those that would be actioning this last-minute and we have prepared for that. In fact, one of our suppliers increased their stock levels with us by 340 per cent in preparation for this increased demand.'

Investor Graeme Fowler said there was 'no way' all rental properties would have had the work done in time. 'Time will tell what the consequences of this will be.'

Any tenant who can prove that their landlord is not meeting their obligations after July 1 will be able to take their case to the Tenancy Tribunal.

The landlord could be required to pay a financial penalty of up to $4000, which would go to the tenant.