28 Oct 2010

Rate rises predicted over Auckland's leaky home problem

6:49 am on 28 October 2010

Auckland ratepayers may face years of rates rises to pay for the city's liability for leaky homes.

Six Auckland councils have agreed to participate in the Government's leaky homes package in which councils and the Government each pay 25% of repair costs, and homeowners the rest.

The councils will merge on Monday when the super city comes into effect.

Local government analyst Larry Mitchell says Auckland city alone may account for up to a third of the country's $11 billion leaky home bill.

He says asset sales are possible, and rate rises look inevitable given the scale of the problem.

Rodney District Mayor Penny Webster says the liability will become clear when the new council comes into effect and she expects the issue will be a top priority for the new council.