3 Jun 2018

New heating costs could lead to overcrowding

9:06 am on 3 June 2018

Landlords are worrying new heating regulations could boost costs and affect their tenants.


Photo: 123rf

The Healthy Homes Guarantee Act was passed last December to lift the living standards of tenants.

Under the Act, houses will now have to reach an "optimum living temperature range" of around 20 degrees using fixed forms of heating as well as insulation.

Housing Minister Phil Twyford said the cost to landlords would be in the several thousands of dollars but that his main priority is ensuring people warm and dry homes.

"That investment would have a lifetime of 15 years or more, it's a tiny amount of money for an asset that generates a great deal of revenue," Mr Twyford said.

The Ministry of Business, Innovation and Employment will begin the consultation process with affected parties within the next two months.

NZ Property Investors Federation executive officer Andrew King hopes to be a part of that consultation.

He says landlords back the Government's plans for warmer and drier homes, so long as it's cost effective.

"If rental prices don't increase, but the costs increase, we're going to see fewer people being able to provide rental properties and are going to get a lack of supply.

"So either way, whether we get rental price increase then that's not good for tenants, but if we don't then we're going to get a reduction in supply which will create overcrowding and that's not good for tenants either," King said.

The law will come into effect on 1 July next year.

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