Heat on state tenants with boarders

National Party housing spokesman Phil Heatley wants a more wide-ranging review of state house tenants making money from boarders and believes the practice is more common than reported.

The Sunday Star-Times reported yesterday that nearly 7000 Housing NZ tenants who had paying boarders were not required to pay extra rent.

Most were in poorer suburbs with waiting lists for state houses.

Where tenants have one or two paying boarders, the board payments are not taken into account when tenants' income-related rents are calculated.

If they have three or more, 62 per cent of the board payments from the third and subsequent boarders is included in the rent calculation.

Tom Bridgman of HNZ said the policy on boarders was now being reviewed as part of the overall review of the accommodation supplement, which was just beginning.

But Mr Heatley said the review needed to be wider and HNZ should share its information about boarders with Inland Revenue to ensure tax was not being evaded.

- NZPA