Complaints have been pouring into Minister of Finance Grant Robertson's email inbox after he made a post on Facebook asking for Wellington students to let him know if their landlords were exploiting them after the $50 student allowance raise.
The post generated a raft of complaints from students saying their rent had gone up immediately after the allowance increase, with Mr Robertson receiving 100 complaints since his post on Friday according to the NZ Herald.
There have also been nearly 400 comments from users on the post which read in part: "There is no excuse for landlords exploiting the situation. My office is getting stories of $50 per week increases on the basis that student allowances and living cost payments have gone up by that much.
"Let me know if this has happened to you. Landlords will increase rents from time to time but it needs to be fair and reasonable. Let’s expose those who are exploiting you and your friends."
Facebook user Nicki Eldridge commented on Mr Robertson's post saying: "Just got my rent put up $80 a week and the landlord terminated my rental agreement to do it.
"No option to negotiate on my part 😢. I've been a great tenant for 6 years."
Victoria University Wellington Students Association President Marlon Drake, told TVNZ1's Breakfast today that many property owners are "taking advantage" of students.
Prospective tenants are now being asked "how much are you willing to pay", Mr Drake said, effectively "putting all the power in the hands of the landlords", allowing them to tender the process.
"There are students who still don't have a place to stay when the trimester starts," Mr Drake said.
The lack of accommodation is leading to increasing stress for students, which has the potential to affect their studies.
"The academic pressures are already quite high and just trying to find a place to lay your head is really difficult," Mr Drake said.
"Students are being particularly hard hit because they are having to compete with young professionals and families who are really quite experienced in the rental market."
Mr Drake said a good solution would be the development of more accommodation in the form of student villages.
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