‘Absolutely outrageous’: McAnulty slams proposed rent increases

Kieran McAnulty expressed his disappointment over proposed rent increases on Trust House properties. Photo / Mark Mitchell

Wairarapa MP Kieran McAnulty claims the decision to increase rents on housing owned by Trust House is “outrageous”.

Trust House, a community-owned company, proposed increasing rents on its community housing and was sending out letters to its tenants advising them of this.

Based in the Wairarapa, housing was also owned in the Tararua District, with the majority of that stock in Dannevirke.

While a good number of tenants were eligible for assistance under the Government’s income-related rent subsidy, around 40 per cent of tenants were not and would have to have conversations with Government agencies around assistance.

McAnulty said he couldn’t “fathom the rationale” and had let Trust House know his thoughts “under no uncertain terms.”

He was concerned at the impact the increase would have on people in the community.

“The financial hardship that these people are going to be put into, I think it’s unjustifiable. And I’m incredibly disappointed.”

McAnulty said he had been inundated with people who had said they couldn’t afford the increase.

He said Trust House was a community housing provider and shouldn’t be charging market rents.

Trust House bought the houses from the National Government in 1999.

“They should be thinking of the community, because they got these houses from the National government for a steal in 1999.

“It’s absolutely outrageous that they now turn around and say, ‘We’re going to charge market rents on people that simply can’t afford it’.”

McAnulty said that social housing tenants did get a subsidy from the Government, so those tenants paid only 25 per cent of their income.

“But for private tenancies, which are the ones that we’re talking about here, they can charge whatever they like. The fact of the matter is that Tararua District is a low-income area [and] they can’t afford to pay the rent they’re charging.

“The houses aren’t worth that amount because they’re substandard. They need to reconsider this.”

McAnulty had been campaigning to get Kāinga Ora to come back to the Tararua District, and last year it was announced that new housing would be built in Woodville, with more developments promised.

“This is exactly why I was so determined to bring Government social housing back, because then we know that every tenant that is with them will be paying a maximum of 25 per cent of their income on rent and it will take the pressure off the rental market for working families in Tararua [District].”

He said the fact that he’d managed to bring Kāinga Ora back didn’t absolve Trust House of their responsibility to provide affordable housing, in his view.

Trust House chief executive Charles Kaka said the houses were purchased in 1999 on an ‘as is, where is’ basis.

“It should be noted that the average age of the properties at this time was 30 years old.”

The purchase was funded by securing a mortgage.

In response to McAnulty’s criticism of charging market rent, he said community housing providers, including Kāinga Ora, charged market rents to ensure they remained viable and compliant, and to meet ongoing costs relating to maintenance and development.

Trust House was currently working with multiple Government entities including the Community Housing Regulatory Authority, Ministry of Social Development, Ministry of Housing and Urban Development and Kāinga Ora to overcome the housing crisis created by successive governments over nearly two decades, Kaka said.

“[We’re] open to re-sharing our proposal with MP McAnulty which deals with rising rents and increasing house supply. Trust House believes our proposal has the support of local community leaders across both Tararua [District] and Wairarapa.”