11. Question No. 11—HousingPAUL EAGLE (Labour—Rongotai) to the Associate Minister of HousingQuestion No. 11—Housing11. PAUL EAGLE (Labour—Rongotai) to the Associate Minister of Housing: What recent announcements has he made about reforming residential tenancies?Hon KRIS FAAFOI (Associate Minister of Housing (Public Housing)): On Sunday I announced that the Government was delivering on its promise to over 1 million New Zealanders who now rent to make it more fair and secure. We're delivering balance in our changes so both renters and landlords will benefit from the suite of practical changes to the Residential Tenancies Act (RTA). Our proposed changes to the RTA include achieving greater security of tenure for tenants who are meeting their obligations through ending no-cause terminations and specifying the reasons that a landlord can use to end a tenancy improving the Act's enforcement and compliance regime clarifying what minor improvements a tenant can make in consultation with their landlord limiting rent increases to once every 12 months and preventing landlords from soliciting rental bids.Paul Eagle: Why is the Government reforming the Residential Tenancies Act?Hon KRIS FAAFOI: The RTA is over 30 years old now and the rental market is much different to what it was back in 1986. Renting used to be a temporary stage for many New Zealanders until they bought a home. In 1986 about 25 percent of households were renting and now it's nearly a third—32 percent. People are also renting later in life and more children are living in rented homes than ever before with an estimated 43 percent of all children growing up in a home that is rented. In recognition of this new reality it's critical to ensure our law governing residential tenancies reflects the modern context and in this context it's essential for people's wellbeing that they have stability whether they rent or own.Paul Eagle: How does the reform fit within the Government's housing programme?Hon KRIS FAAFOI: The Government has a comprehensive plan of initiatives to fix the housing crisis that we inherited. This includes banning letting fees; introducing the healthy homes standards to keep people living in rentals safe warm and dry; banning foreign speculation from buying existing New Zealand homes to ensure that Kiwi families are not priced out of the market; committing significant new funding through Budget 2018 to build more State homes more than any since the Governments of the 1970s; and providing first-home buyers—SPEAKER: Order! That list's gone on for too long.Hon Judith Collins: Does he still stand by statements made in the Cabinet papers regarding these changes and regarding risk that This risk includes landlords exiting or not entering the rental market raising rents to price in risk or becoming more stringent about offering a rental to a prospective tenant."?Hon KRIS FAAFOI: Yes that is a common refrain from the Opposition when we've announced many of our changes and it isn't actually supported with evidence. Evidence shows that since September 2017 and September 2019 the number of rental properties available to be rented has actually increased by nearly 20000.SPEAKER: No I think I'm going to ask the member to ask the question again so the core of the question is addressed "Does he stand by".Hon Judith Collins: Thank you. Does he stand by his statements in a Cabinet paper regarding these changes that "This risk includes landlords exiting or not entering the rental market raising rents to price in risk or becoming more stringent about offering a rental to a prospective tenant."?Hon KRIS FAAFOI: In conjunction with the earlier part of my answer yes it's a low risk but it actually hasn't been borne out by the evidence to suggest that the number of rental properties has gone down. In fact official statistics from Stats New Zealand suggest that rental numbers have actually gone up.Hon Judith Collins: So does the Minister also stand by his statement in the same Cabinet paper that "This risk could also lead to increased Government spending on housing initiatives such as IRRS AS and TAS. It could also create further demand and pressure on public and transitional housing." and if not why does he no longer believe that?Hon KRIS FAAFOI: I stand by the comments in the Cabinet paper. I think it's imperative that we point out risks even though they may be low and we'll be watching those risks very closely. But we're not going to sit here and sit on our hands like the previous nine Governments as the number of New Zealanders who are renting their accommodation increased to nearly a third of the population and do nothing to ensure that those tenancies are secure.Paul Eagle: How do the reforms balance the interests of landlords and tenants? Hon KRIS FAAFOI: We have taken a balanced approach and sought ways to improve the security of tenure for tenants who are meeting their obligations. The proposals also provide for landlords with new tools to manage their assets where there are low-level breaches for either antisocial behaviour or rent arrears. These are complementary to the existing provisions in the Residential Tenancies Act that deal with more serious or egregious breaches in tenants' obligations. I am confident that there is a clear majority of tenants and landlords who are motivated to do the right thing by each other and that in these cases they will be largely unaffected by what is being proposed.Paul Eagle: What evidence if any has the Minister seen of landlords leaving the market because of the introduction of higher standards?Hon KRIS FAAFOI: There has been no such evidence. It is a refrain that is thrown again from the Opposition but I would reiterate that between September 2017 and September 2019 there has actually been an increase in the number of rental properties available."