Faafoi KrisRESIDENTIAL TENANCIES AMENDMENT BILLFirst ReadingHon KRIS FAAFOI (Associate Minister of Housing (Public Housing)): I move That the Residential Tenancies Amendment Bill be now read a first time. I nominate the Social Services and Community Committee to consider the bill. At the appropriate time I intend to move that the bill be reported to the House by 22 June 2020. The Residential Tenancies Act 1986 came into force over 30 years ago to govern a rental market very different to that of what we see today. Since 1986 homeownership rates have declined and 609700 New Zealand households now live in a rented property which by last year was an estimated 32 percent of our population. More people including families and older people are renting for longer or even for life. The 1986 Residential Tenancies Act has not reflected this reality and there are still issues with the stability and insecurity of rentals which can have negative impacts on health education and employment. Through this bill the Government is delivering on its promise to over 1 million New Zealanders who rent that we are making the rental market fairer and more secure. It sits alongside this Government's other improvements to renting including the banning of letting fees and the healthy homes guarantee. Comprehensive public consultation from August to October 2018 helped shape this bill. There have been frank robust and at times difficult conversations with those representing property investors and landlords' advocacy groups but what we are talking about in these reforms is not just much-needed protections and security of tenure for tenants but also clearer processes and certainty for landlords. The views and perspectives of over 4700 submissions from landlords tenants interest groups and public or community housing providers have gone into shaping this legislation being introduced today. I would like to thank all of those who have contributed over that time and engaged in this important process. This bill recognises the balance between protecting a landlord's interest in their property and ensuring tenants receive fair rights for the rent that they are paying. This Government believes that every New Zealander including renters should have a safe warm and dry home to call their own. This Government appreciates the contribution that landlords make in providing these homes. These changes are designed to have the least possible impact on landlords. This bill will improve tenants' security by removing no-cause terminations to end a periodic tenancy agreement but still recognises landlords' rights. For instance under these reforms landlords will still be able to terminate tenancies for a range of fair and justified reasons such as antisocial behaviour or someone who is at least three weeks behind in their rent. If they want to change the use of the premises or to redevelop it that will also be a reason. If they want to prepare it for sale or move themselves or a family member in all of these reasons give a landlord justification to terminate a tenancy but it is simply not appropriate in 2020 for a person to be required to leave their home without knowing why. The bill mandates that fixed-term tenancy agreements must become periodic tenancy agreements upon expiry unless both parties agree otherwise or the justified reasons set out in the bill apply. This will flatten the inflated demand that has been created in some regions by tenancies all ending at the same time. The bill makes rental properties safer and more livable by setting out clear processes for tenants to make minor changes to their rental accommodation. These changes could be as simple as brackets to secure furniture and appliances against earthquake risk baby-proofing the property hanging pictures or installing visual fire alarms and doorbells for hearing-impaired tenants. Landlords will be able to set reasonable conditions when agreeing to these minor changes. The bill also includes additional proposals to improve the process for the installation of fibre in rental properties. Where a tenancy or property does not already have ultra-fast broadband and a tenant requests it landlords will be required to permit and facilitate the installation of ultra-fast broadband unless any of a range of exemptions apply—for instance where fibre could compromise the structural integrity or weathertightness of the building the landlord could decline the request. The costs of installation would be the tenants' responsibility and not the landlord's. This amendment will help tenants obtain installation of fibre in reasonable circumstances and will further the Government's roll-out of ultra-fast broadband. The bill prohibits the solicitation of rental bids by landlords and this includes the requirement that landlords must specify a rent amount when advertising a rental property. The bill also limits rent increases to once every 12 months instead of the current provisions of six months in the Residential Tenancies Act as it stands. In 2016 the tenancy compliance and investigations unit was established to enforce rental rules. This bill provides the regulator which is the Ministry of Business Innovation and Employment in this case with a suite of new tools to take direct action against parties who are not meeting their obligations. The bill also increases the existing financial penalties in the Residential Tenancies Act and this package of amendments will improve compliance with the law. I'm also aware of situations where tenants have a justifiable cause to go to the Tenancy Tribunal but are unwilling to do so because they may be blacklisted by future landlords. For the tenancy system to work people should feel confident that the Tenancy Tribunal can be used without being targeted. The bill clarifies the situations where identifying details and other sensitive information can be anonymised. This includes automatic anonymity for a party that has been wholly or substantially successful in taking a case to the tribunal. We are mindful that these changes need to modernise the law and correct problems in a way which is proportionate and places reasonable requirements on landlords and tenants and which will endure changing market characteristics. But these changes are needed because the reality of renting has changed over the past 30-plus years. We're talking change where as I said at the start of the speech the reality now is that around 32 percent of Kiwi households live in rental accommodation whereas in 1986 it was 25 percent. We're talking about change where now around 43 percent of Kiwi children live in rental accommodation. Back in 1986 it was about 26 percent. I know there are opposing views on this proposed legislation and I welcome those being discussed at the select committee process. But the changing nature of renting in New Zealand means our rental laws need to change as well. They complete the package of improvements of rental markets that were planned for this Government's first term and which include the introduction of the healthy homes guarantee to ensure that all rental accommodation is warm and dry. I look forward to a time when thanks to our reforms in this bill renters in New Zealand can make a rental house truly a place to call their home. To finish up I would like to thank both the New Zealand First Party and the Green Party for their discussions to the point to get to this first reading—notably Marama Davidson and the Hon Ron Mark. I commend this bill to the House.