Owners of rental properties have until 2024 to reach healthy home standards, Government announces

Sunday, 24 February 2019

Housing Minister Phil Twyford announced in February changes that will mean rental property owners have to provide warmer and drier homes for tenants. (Video first published in May 2019)

Private Landlords have been given just over two years to ensure rental properties meet the Government's healthy home standards but it could mean tenants will wind up paying more rent.

Housing and Urban Development Minister Phil Twyford announced the changes in Wellington on Sunday which will require a minimum standard for heating, insulation, ventilation, moisture and drainage in residential rental properties.

Private landlords have until July 1, 2021 to ensure rental properties comply with the standards, while Housing NZ and other social housing providers have another two years.

Under the changes, kitchens and bathrooms will be required to have extraction fans or rangehoods.

But the New Zealand Property Investors' Federation (NZPIF) predicted tenants would foot the bill for improvements.

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All rental homes will be required to have ceiling and underfloor insulation that either meets the 2008 Building Code insulation standard, or (for existing ceiling insulation) has a minimum thickness of 120 millimetres.

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Executive officer Andrew King was supportive of the quality standards but said changes would need to be cost-effective so landlords did not pass them on, but that was unlikely for homes with existing insulation.

'Topping up existing insulation provides very little improvement for tenants but costs almost the same as installing completely new insulation.'

Heat pumps would increase rental prices by about $15 a week because they were expensive to buy, install, maintain and replace, he added.

'This means tenants who do not want, and will not use, a heat pump will still be paying for it through higher rent.'

Twyford said the average three-bedroom home which did not meet the standards would cost about $7000 to upgrade.

Landlord Lynley Thomas, whose Lyall Bay home the announcement was made in, said she wouldn't increase rents as a result of the changes but imagined others would.

She said the Government's announcement would be 'great for the wellbeing of tenants … from a landlord's point of view, you don't like to be told to spend money'.

It could be a scary concept for people who weren't property investors to face extra expenses and it would mean more paperwork for property managers, she added.

'The flow-on effects may, in time, flow on to the tenant.'

Thomas's home met the Government's standards after a recent refurbishment but, she said, others she owned would need work.

Nearly 600,000 households were rental properties but were of poor quality, compared to owner-occupied homes,' Twyford said.

'It's estimated about 200,000 families live in rental homes that do not have ceiling or underfloor insulation.'

The Ministry of Health admitted 6000 children each year for 'housing-sensitive hospitalisations', he said. Children were nearly four times more likely to be re-hospitalised and 10 times more likely to die in the following 10 years.

'We cannot continue to accept this.'

Green Party Co-leader Marama Davidson welcomed the announcement, saying no-one should have to live in a home that makes you sick.

'I've lived in a house where the damp is unrelenting and mould made my kids sick. We can do so much better than this and this is exactly what this Government is doing.'

The next step is for the standards to be drafted in regulations and approved by Cabinet. The regulations will become law by mid-2019.

All rental homes will be required to:

Have a heater that can heat the main living area to 18 degrees Celsius.
Have ceiling and underfloor insulation that either meets the 2008 Building Code insulation standard, or (for existing ceiling insulation) has a minimum thickness of 120 millimetres.
Kitchens and bathrooms will be required to have extraction fans or rangehoods.
Install a ground moisture barrier to stop moisture rising into the home where there is an enclosed subfloor space.
Have adequate drainage and guttering to prevent water entering the home.
Block draughts that make a home harder to heat.

Compliance timeline:

July 1, 2021 – Private landlords must ensure rental properties comply with the healthy home standards within 90 days of any new tenancy, and all boarding houses must comply with the healthy home standards.

July 1, 2023 – All Housing New Zealand houses and registered Community Housing Providers houses must comply with the healthy home standards.

July 1, 2024 – All rental homes must comply with the healthy home standards.

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