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Home / New Zealand

State house tenants owe more than $4m

16 Apr, 2007 03:00 AM2 mins to read

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KEY POINTS:

State housing tenants owe more than $4 million in back rent and property damage.

National MP Phil Heatley, who got the figures from Housing New Zealand, said the debt was snowballing, putting tenants on low incomes in a terrible position.

"Everyone understands that when you're on a low
income it becomes even harder to catch up when you fall behind. When low income tenants owe thousands upon thousands of dollars, it's incredibly difficult to clear," he said.

Total debt, from back rent and money owed for damage and vandalism, was up from $3.65m at the end of September 2006 to $4.37m as at the end of February this year.

State housing tenants in Porirua, north of Wellington, are among the worst -- owing a total of $325,738 in back rent and for property damage.

In Auckland, state housing tenants owed $2.4m, 8 per cent up on the previous six months.

In Wellington, the debt was $760,316 -- 25 per cent higher than the previous period.

There was a 15 per cent increase in rent arrears and damage in Christchurch where State housing tenants owed $91,896.

Some areas -- such as Timaru, Wanganui and Hawke's Bay -- showed an improvement in the level of debt owed by State tenants.

"Fifteen per cent of Housing New Zealand tenants are in debt to their landlord," Mr Heatley said.

Of those 9514 debtors, 6311 were on a repayment scheme, he said.

The largest debt -- all for damage and vandalism -- was incurred by a current Auckland tenant who owed $11,639.

- NZPA

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