Watch: Winston Peters admits abolition of letting fees may lead to 'temporary rent rises'

Winston Peters has admitted the abolition of letting fees may lead to "temporary rent rises" during Question Time in Parliament today.

Mr Peters was answering on behalf of the absent Prime Minister when National Party leader Simon Bridges raised the issue.

"Does she still have hope her policy won't lead to higher rents when there are property companies emailing their clients telling them to increase rents by amounts such as $6 per week to recover the abolished letting fees," Mr Bridges asked.

Mr Peters then admitted that rent rises may occur due to the policy, but said tackling housing supply was the Government's main focus.

"The Minister of Finance, the Minister of Housing, as well as the Prime Minister and yours truly answering for the Prime Minister, have said there could be a temporary rise while we try and get on top of the massive shortage in supply of housing.

"There used to be a time the National Party understood supply side economics but they don't when it comes to housing," he answered.

Mr Bridges then tried to nail down specifics of possible rent rises.

"How long will the temporary rise last and how much will it be?" he asked.

Mr Peters again went back to the issue of supply in a lengthy answer.

"The Government admitted when it saw the mess and dysfunctionism between supply and demand in housing in this country that we wouldn't be able to fix it up all in one year or indeed two years.

"But because we were prepared to address a massive crisis in the housing situation of this country that there will be a temporary rise in the amount of rent.

"But then because we would be building 100,000 houses we would get on top of this problem, not like the previous government that denied there was a crisis until a day after the election and then discovered one in the same way Columbus discovered America, purely by accident."

Letting fees will be banned on December 12, with some fearing the cost will be passed on to renters.

Letting fees will be banned on December 12.
 

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