Nearly half of the state houses assessed in a warrant of fitness trial were classed as "high risk" and in need of urgent repair, a new report shows.
The assessment of 400 Housing New Zealand properties across the country also found nearly one in 10 houses had significant mould problems and one in three had neither insulation nor heating.
The Government confirmed plans on Thursday to introduce minimum standards for rental properties, focusing on compulsory insulation and installation of smoke alarms.
Housing Minister Nick Smith ruled out a broader warrant of fitness scheme for rentals, saying that it was more efficient and pragmatic to focus on "real improvements".
He said the WOF trial, which took place in March and April in 2014, showed that the scheme was costly and time-consuming. Each inspection, which looked at 49 criteria, took between 60 and 90 minutes and cost $225.