On Wednesday 25 March the Government announced a rent freeze and more protection for tenants. This includes:
- Immediate freeze on rent increases
- Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances
- Tenants who had previously given notice can stay in their if they need to stay in the tenancy during the lock-down period
- Tenants will still be able to terminate their tenancy as normal, if they wish
The Government is supporting New Zealanders to stay in their rental properties with a six month freeze on residential rent increases and increased protection from having their tenancies terminated, says the Housing Minister Dr Megan Woods.
“These changes will ensure that people can stay in their homes during this challenging time. This enables families and individuals to self-isolate, to stay home and maintain physical distancing, supporting the public health of all New Zealanders.
“It also means that in the short term, families and individuals who are tenants do not lose their home due to a drop in income related to job losses through Covid-19.
“Sustaining tenants in their current homes will help prevent further pressure on our welfare system at this time,” Dr Woods said.
Support for landlords with mortgages, was announced on Tuesday. Retail banks will in coming days provide details around a six-month mortgage payment holiday for those whose incomes have been affected by COVID-19.
“Sustaining tenants in their current homes will help prevent further pressure on our welfare system at this time,” Woods said.
“These changes will ensure that people can stay in their homes during this challenging time. This enables families and individuals to self-isolate, to stay home and maintain physical distancing, supporting the public health of all New Zealanders.
“It also means that in the short term, families and individuals who are tenants do not lose their home due to a drop in income related to job losses through Covid-19.
“It is not acceptable for tenants to abuse the current situation by refusing to pay rent when they have the capacity to do so, causing significant property damage, or significant anti-social behaviour. Tenants are still fully liable for their rent payments and any damage as we ensure that Landlords do not increase the burden on tenants.
“The measures we have proposed try to balance protection of the interests of tenants, landlords, and the wider community during this unprecedented time.
“In these unprecedented times, we encourage landlords to talk to their tenants, work together and take care of each other wherever possible. Parties should try to come to an arrangement that suits them both. We need to work together and help each other to fight Covid-19."
For independent advice from someone who understands this process well, and will have your best interests at the centre of their negotiations, contact a member of Govett Quilliam's Property Law team today.
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