Wellington sleep-out for $220 a week illustrates 'dire' rental situation

Monday, 31 January 2022

The sleep-out is considered the fifth bedroom of the house.

A central Wellington sleep-out costing $220 a week is another example of the 'dire’ rental situation, Renters United says.

But property experts are divided whether the small cabin, which is the fifth bedroom of the house and sits at the back of the property, complies with the Healthy Homes standards.

Housing Advice Centre manager Ellen Dixon said, based on the video, the building did not comply.

The inside of the sleep-out looked recently done, so insulation could have been completed, but there appeared to be no heating of any sort, which must be supplied. There also appeared to be no other ventilation other than the window, she said.

Auckland renter, Sarah Bickerton, has found finding and affording a rental apartment far easier in Auckland compared to Wellington.

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A central Wellington flat has a fifth 'bedroom' at the back of the property for $220 per week.

“It would also be interesting to know if it qualifies as a sleep-out by the local council standards,” she said.

But Masterton-based property investment manager Keith Archer said the cabin had “nothing visible that would make it uninhabitable”.

The rent for the entire property was $1100 a week before expenses, and all five tenants are on the lease.

The sleep-out tenant has access to a kitchen and bathroom in the main house.

The video shows there is enough room for a bed, a chest of drawers and a desk, and a clothes rack but does not have a built-in wardrobe.

TVNZ journalist Abbey Wakefield posted the image to her Twitter account, saying the person who rented it had applied for 55 flats before landing what she called “the shed”.

Renters United president Geordie Rogers says his organisation is only able to counter paid lobbyists because they have public support.

The tenant told Breakfast he was “stoked” to have found a place to rent.

Renters United spokesman Geordie Rogers said the listing was another example of the dire situation renters were facing everyday.

“While private landlords are lining their pockets renting out converted sheds, garages and campervans, the Government continues to make no interventions in the rental market after decades of renters being unable to access warm, safe and affordable homes,” Rogers said.

This property is another example of why the Healthy Homes standards should have come with a system like a Warrant of Fitness, he said.

Compliance with the new healthy homes standards, which set minimum requirements for heating, insulation, ventilation, moisture, drainage and draught-stopping in rental properties, is being phased in over several years.

The standards would lift conditions for more than 600,000 people who live in rented homes.

Economist Brad Olsen said fluctuating university enrolments reflects the changing labour market.

From July 1 last year, private landlords must ensure their rental properties complied with the healthy homes standards within 90 days of any new, or renewed tenancy, or face a fine.

“Owners would be discouraged from renting out these shacks for a cash grab if they had to prove that their property was healthy before it could be listed,” Rogers said.

The tweet also highlighted how difficult it was to find a flat of any standard and it was not uncommon for prospective tenants to apply for 50 to 100 properties, before a landord replied, Rogers said.

“In this market, renters are very unlikely to be able to take landlords to the tribunal without facing repercussions, so until this Government is willing to take action, things are only going to get worse.”

Renters United has a plan of 36 policies that the Government can implement to make a material difference to renters, he said.

Housing Advice Centre, Tertiary Education Action Group Aotearoa, Renters’ United and the Manawatū Tenants Union had called for Healthy Home Standards to be indicated on third-party websites, such as Trade Me, to make more people aware of what the standards were, so they did not end up in sub-standard living situations, she said.

In November Trade Me figures showed the median rent in Wellington was $620, and $650 in Porirua.

Demand for rentals in the Wellington region was up by 10 per cent in November compared with the same month in 2020, while supply was down by 3 per cent, the Trade Me data showed.

Infometrics principal economist Brad Olsen said demand for rentals continued to rise, but supply was not keeping pace.

The number of listings of Wellington rentals had reduced recently, Olsen said.

“It’s just appalling that young Wellingtonians have to go through the rental rat race of numerous rental applications, ever rising prices, and some frankly poor quality dwellings to call a home.”

Olsen said he had found it difficult to find a rental for himself in Wellington and more housing needed to be built quickly.

“We need serious commitments and action to develop more housing across the city and the region, with more funding for infrastructure, more density, modular building options, and speedy administration and consenting support,” he said.