Rental Crisis Looming In Auckland, Property Manager Warns

Principal Wayne Boberg tracks the numbers of rentals available and houses for sale for Auckland and believes the sell off is being accelerated by the Government's latest proposals.

"Since the Government first raised the issue of property tax changes in August last year, there has been an increase in the exodus of landlords from the rental market, mainly landlords who have been in the market for a long time.

"They have sold their properties to owner occupiers so those homes are lost to the rental market. Trade Me figures show hundreds fewer rentals available each month since November compared with the same months the previous year.

"The number of rentals available is shrinking and with building consents down, it seems there's nothing to replace them," Boberg said.

"We are finding the demand for rental properties is not diminishing and rents for even ordinary properties are rising."

Boberg cites a recent example. A 2bm house in Blockhouse Bay rented for $225 per week became vacant shortly before Christmas. The landlord cleaned it up and improved the kitchen, it is now rented out at $265 pw. "That's a huge jump."