9. Housing Rental—Affordability Security Residential Tenancies Act and Letting FeesPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionHousing Rental—Affordability Security Residential Tenancies Act and Letting Fees9. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: Does he believe the rental market is affordable and secure enough for New Zealand families; if so why?Hon Dr NICK SMITH (Minister for Building and Construction): The quality of rentals has markedly improved with this Government's aggressive home insulation programme that has seen 300000 homes retrofitted and our new law that requires the remaining 180000 homes to be insulated by 2019. In respect of rents they have gone up by an average of 3.4 percent since 2008 as compared with an average increase of 5.2 percent for the previous 8 years. The rental market is most affordable and secure where we have aggressively increased supply in places like Christchurch where rents have dropped by 10 percent in the last 2 years. Phil Twyford: When rents are up nearly 40 percent since his Government took office and when rents are rising twice as fast as incomes in Auckland is that a reasonable level of increase or is it yet another symptom of his out-of-control housing market?Hon Dr NICK SMITH: I note that both nationally and in Auckland the rate of rent increases under this Government has been significantly and markedly less than what it was under the previous Government when it did nothing. Phil Twyford: Does he think that it is a problem of success" when working families like Invercargill woman Lisa Calder end up living in a house bus because the uncertainty in the rental market makes living in a bus a more stable option? Hon Dr NICK SMITH: As a constituency MP of 25 years there have always been difficult situations where people's housing has been inadequate. The answer is that increasing supply and the sorts of comprehensive reforms of the likes of the Resource Management Act which his party has refused to support will actually make the material difference long term for families like those he speaks of. Phil Twyford: Why has he not updated the Residential Tenancies Act to give renters more security of tenure after 8 years in Government given that more than half the population are renters and the average tenancy is less than a year? Hon Dr NICK SMITH: The member's facts are firstly incorrect; 64 percent of New Zealand homes are owner-occupied. Secondly in respect of the issue of the Residential Tenancies Act I am actually very proud of the record this Government has with requiring smoke alarms requiring insulation and the new compliance and enforcement unit that is ensuring that our tenants do have access to good-quality homes. Phil Twyford: Does he think it is fair to renters that they have to pay letting fees of up to the equivalent of 2 weeks' rent at the very time they have to find 2 weeks' rent in advance and up to 4 weeks' bond; if not what is he going to do about it? Hon Dr NICK SMITH: I note the issue around letting fees is the same law that was actually in the Residential Tenancies Act that was passed by the Labour Party. The key issue if we are serious about helping the level of housing costs whether it be for first-home buyers or whether it be for renters is actually to enable more houses to be built. This Government is making great progress with a large-scale building boom and 30000 homes being built. I just wish members opposite would support key reforms like to the Resource Management Act that would actually make a difference."