Hobsonville Point homes first in planned ‘evolution’ of New Zealand’s residential rental market
More New Zealanders are renting than ever before, and the ranks of ‘generation rent’ are predicted to continue to swell. In 2012, a Government report on housing affordability concluded that renting must now fulfil a new purpose, to “provide secure, long term, quality, rental housing on a much larger scale”.
In addition to quality of housing, renters' insecurity of tenure was a major theme highlighted in the recently released People's Review of Renting. Security of tenure provides renters with a more stable home, stronger connection to their community, and improved health and education outcomes for their children.
In places with a high proportion of long-term renters, such as Germany, Switzerland and New York, renting is viewed as a long-term, mutually beneficial partnership between tenant and landlord. The importance of these partnerships is reflected in renters’ rights that ensure higher quality housing, longer leases and predictable rent increases. In New Zealand, according to Human Rights Chief Commissioner David Rutherford, we have a long way to go toward achieving this kind of partnership.
Changes are afoot, however. New Ground Living, a subsidiary of New Ground Capital, recently announced their intention to trigger an evolution in New Zealand’s residential rental market. Their mission is to be “the landlord of choice for Kiwi households seeking a quality home, security of tenure and a professional landlord.” New Ground Capital has teamed up with the NZ Super Fund and Ngāi Tahu Property to develop 208 new homes in the ‘Kerepeti’ development at HLC’s Hobsonville Point, at least half of which will be offered to the market beneath the Auckland median house price. Forty-seven of these homes will be retained by the consortium and made available to tenants for a lease period of up to seven years. Provided they meet the terms of the lease, they cannot be asked to vacate the property prior to the lease period, although they can choose to end the tenancy earlier if their situation changes.
The homes will be professionally maintained, and tenants will (with prior approval) have the option to make minor renovations or have their pets live with them. Rent is set at the prevailing market rate for the first year and then adjusted by CPI for the following two years before being reset to the prevailing market rate on the third anniversary. This gives the tenant more certainty around their likely rent expense.
The first of the Kerepeti homes at Hobsonville Point are currently being built, and will be ready for occupation in 2018. New Ground Capital plans further similar developments around New Zealand.
To register your interest in these rental properties at Kerepeti visit newgroundliving.co.nz.