John MacDonald: Landlords aren't the emergency housing solution

Canterbury Mornings with John MacDonald

The Government says it wants to see less people living in emergency accommodation in motels. My response to that: who doesn’t?

It also says it might pay landlords to take on tenants currently living in motels. My response to that: you’re dreaming.

And I’m not just saying that. I’ve got official numbers to back it up. Numbers that have come to light since the announcement yesterday by Social Development Minister Louise Upston and Housing Minister Chris Bishop.

Aside from the motel stuff, the Government’s overall aim is to end large-scale emergency housing. Of which motels are a part. And it’s talking about “bold and radical steps”.

It wants more checks and balances before the emergency housing tap gets turned on for people, and it’s telling people that the tap isn’t going to just stay on forever - as it has done in recent times. Certainly under the previous government.

So, what’s going to happen, is when someone applies for emergency accommodation, the Ministry of Social Development is going to ask a few more questions. It’s not just going to say ‘yes’ straightaway.

Because it’s fair to say, isn’t it, that even though there are people in genuine need of emergency housing, there are others who do no favours for themselves.

They might have treated rentals the same way rock stars used to treat hotel rooms.

Or they haven’t bothered paying their bills.

And the Government isn’t going to automatically give people emergency housing grants for seven to 21 days - as they do now. Instead, they’re going to give people grants to cover between one and four days while they look into people's circumstances.

So that’s all good stuff. Because, as Chris Bishop says, emergency housing is costing the taxpayer about $350 million a year. And, over the past five years, $1.5 billion has been spent.

And yes, if there’s a genuine need - go for it. But if people are only after emergency housing because they’ve been a pain in the backside elsewhere and been kicked out, or haven’t been bothered paying their bills, then, of course, they should go to the back of the queue.

But as for this pipedream that private landlords could be part of the solution if a few sweeteners are put in front of them. Things like a 90-day notice period and paying landlords a bit of extra money if they take on emergency housing tenants. They aren't going to make one bit of difference.

Because, since the Government made this announcement yesterday afternoon, some data from Stats NZ has come out that shows a big upswing in the number of active rental bonds.

Which is clear evidence that more places are being rented out. And the experts are saying one of the big reasons for that is migration.

Kelvin Davidson is chief property economist at CoreLogic NZ, and he’s saying today that the increased demand for rentals is pushing rent prices up - with Christchurch and Auckland the areas where rents are going up the fastest.

So, do you really think that a landlord who is being overwhelmed by people wanting to rent their place out and, because of that demand, can charge more, is going to be enticed by a few extra bucks from the Government to take on emergency housing tenants?

Of course they’re not.

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