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Kainga Ora Failing To Collect The Rent
“The average rent arrears owed to Kainga Ora has quadrupled in just three years. The scale of the disaster in Hawke’s Bay shows the government will need to tighten its belt and it can no longer afford to let things like this slide,” says ACT’s Deputy Leader and Housing spokesperson Brooke van Velden.
“Written Parliamentary Questions answered by Housing Minister Megan Wood show that the average rent arrears owed to Kainga Ora by its clients have increased from $483 in November 2019 to $1901 in November 2022.
“The total amount owed in rent arrears has increased from $2,320,228 in September 2019 to $16,989,285 three years later in September 2022.
“The largest sum owed by an individual in rent arrears was $41,371 as of 30 November 2022.
“Woods acknowledges in her answer that the primary reason rent arrears has spiralled out of control is because of “increases in the cost of living”. The fault belongs with her government, they have consistently run deficits, borrowed and spent. New Zealand households are feeling the consequences through inflation and until Labour reigns in their spending things won’t change anytime soon.
“The Government might think it is being kind by not making its tenants pay their rent but as is always the case someone has to cough up, in this case it will be taxpayers.
“By not collecting rent the Government shows it’s completely out of touch with the reality of the housing market. Landlords face added costs every year that force up rents for Kiwi renters, by comparison the Government has an open cheque book and takes little notice of unpaid rent adding up into the millions.
“Kainga Ora recently asked for $2.75 billion so they can compete with the private sector to build homes. There is no logic to this in a resource-constrained market. It is only driving inflation. This is even more galling when considering they’re not even completing their tasks as a landlord adequately.
“If Kainga Ora isn’t able to operate by the same rules and standards as private landlords it should get out of the business.”
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