Emergency protections for renters to end next week as Government boosts support

June 18, 2020

The emergency protections for renters in New Zealand will be lifted as planned next week, but a freeze on rent increases will remain in place for a few more months.

As the Covid-19 pandemic escalated, the Government brought in restrictions to prevent tenants from being booted out during the lockdown.

However those emergency protections are now ending, with normal termination rules taking effect from next Friday.

It means landlords will be able to terminate a tenancy again "if they have lawful grounds to do so", the Government says, such as providing a required notice period.

In anticipation of the change, Minister for Social Development Carmel Sepuloni and Associate Housing Minister Kris Faafoi have announced a boost to Rent Arrears Assistance.

"While we're ending the period of increased protections against tenancy terminations, the increased rent arrears assistance is aimed at helping both tenants and landlords while they work through any rent issues," Mr Faafoi said in a statement today.

It comes after the economy took a significant hit during the pandemic and lockdown, and Ms Sepuloni says it'll help those who have had their income impacted by Covid-19.

"The Assistance will ensure people who may have built up a rental debt can stay in their homes while they pay the rental arrears," she says.

"This support is available for a range of people including those who are working. Keeping people in their homes is a priority."

The freeze on rental price increases remains in place until at least September 26, but landlords can now give a rent increase notice to take effect from that date.

Meanwhile the Real Estate Institute of New Zealand (REINZ) is welcoming the change.

Chief executive Bindi Norwell says they've been advocating for it to be removed since the shift to Alert Level 1.

"Whilst the legislation had great intentions in the early days, and helped many tenants out during Level 4 lockdown, of late it had been causing more harm than good which is why we had been imploring the Government to bring the legislation to an end," she says.

'Today's announcement will also allow landlords and property managers to now shift their focus to dealing with the upcoming Healthy Homes legislation and ensure that they are prepared ahead of the upcoming deadline, rather than being distracted by issues arising out of the emergency provisions."

The rules were temporarily brought into force on March 26, with the potential of being extended another three months if necessary.

It meant landlords couldn't evict their tenants or provide termination notices except in extreme circumstances, which required applying to the Tenancy Tribunal.

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