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Long-term tenancies or home-ownership – what are New Zealand’s aspirations?
Many Kiwi renters have become accustomed to the exhausting task of packing up and moving house every year or two.
But a new 350-apartment development planned for Auckland’s Takapuna could signal a shift towards large-scale projects built with long-term renters in mind.
These ‘build-to-rent’ apartments provide tenancies of up to 10 years, giving renters some peace of mind.
While some say these developments could help to alleviate New Zealand’s housing shortage, one developer says more debate is needed before government policy shifts away from the goal of home ownership altogether.
In just a few years’ time, a 2875m2 site on Takapuna’s Auburn Street could house 350 apartments’ worth of new residents.
It would be the North Shore’s first major Build-to-Rent development, meaning the apartments would not be sold to landlords but set aside for long-term renters.
Kate Cumberpatch, from Auckland Council’s development agency Eke Panuku, said as well as providing security for renters, the new block would provide a big boost for the suburb’s businesses.
“Bringing all those people to Takapuna will be great for the diversity, the economic growth, and just the general vibrancy of Takapuna,” she said.
Eke Panuku facilitated the sale of the land to developers Cedar Pacific and McConnell Property.
A 2875m2 site on Auburn Street in Takapuna could be the site of North Shore’s first major build-to-rent development. Photo: RNZ / Tom Taylor
Although it was not a requirement for this apartment block, Cumberpatch said the council viewed build-to-rent developments positively.
“It’s great to be able to have a lot of rental product within Takapuna, in a suburb where house prices are quite high.
“It’s great to be able to offer a rental product here that is generally more affordable than owning.”
Build-to-rent tenants were able to sign up to 10-year tenancies and were given scope to personalise their homes.
In tenancy agreements, landlords had to give examples of the ways in which tenants could make changes to the property.
They also had to outline their position on pets.
Tenants who agreed to 10-year tenancies were able to end their tenancy with 56 days’ notice.
The site of the possible Takapuna build-to-rent development. These types of developments generally allow tenants to sign up to 10-year tenancies and have some scope to personalise their homes. Photo: RNZ / Tom Taylor
Property Council advocacy consultant Denise Lee said New Zealand was falling behind the rest of the world when it came to providing renters with these opportunities.
“It’s a really exciting opportunity to transform the renting experience in New Zealand. I think Kiwis genuinely do deserve more choices and more options.”
Lee said while the government had started to come onboard by defining build-to-rent as an asset class, some legislation – in particular the Overseas Investment Act – was still lagging behind and getting in the way of the foreign investment needed to get development moving.
“Our members estimated back two years ago that given the right legislative settings, the right support from the government, we could build 25,000 build-to-rent homes in 10 years.
“Every day that goes by, we’re actually missing out on the opportunity for a fantastic, professional, long-term, secure, flexible type of rental accommodation.”
One of the few build-to-rent developments already up and running in Auckland was the Modal – a shiny black apartment block curving around a corner on New North Road in Mount Albert.
One Model apartment tenant liked the idea of being able to stay for as long as wanted. Photo: RNZ / Tom Taylor
Tenant of two years Juan said the options for long-term leases gave him a sense of security.
“It’s good to know that you just have a place to stay for as long as you want, and you can renew it anytime.”
But Mark Todd, co-founder of Ockham Residential, the company behind Modal, said although he had invested in the build-to-rent market, he was not convinced it was the solution for New Zealand’s housing crisis everyone was hoping for.
“Why are we giving up on the aspiration of home-ownership from a policy point of view?” he asked.
To qualify for exclusions from the interest limitations that apply to most residential properties, build-to-rents must have 20 or more rental dwellings in a single development, owned by the same person or company.
With its 32 apartments, the Modal qualified for these exclusions.
However, Todd said many smaller developers would be shut out of the market because of the requirement.
And Todd said big developers did not necessarily mean better quality homes.
“Don’t assume that just because you’ve got a big guy that’s got the pockets to build 1000 units that they’re going to be great. You might end up with 1000 warm, dry units that are just devoid of character.”
While build-to-rents could provide more security for tenants, there was already legislation in place that was meant to safeguard renters’ rights, he said.
Todd said a larger debate was needed before government policy started to favour long-term rentals above New Zealanders’ long-standing ambition of home ownership.
SOURCE RNZ
The chief executive of the Parliamentary Service is confident there will be enough room to accommodate the increased number of MPs and their staff coming into Parliament.
On current numbers, up to 131 MPs could be sitting in the Chamber following the election, brought on by a record overhang result.
Clerk of the House of Representatives Dr David Wilson told the Spinoff that currently the debating chamber had enough chairs to seat 124 MPs – including the Speaker of the House – and work was being done to accommodate more by altering the seating arrangement.
In a statement, Parliamentary Service chief executive Rafael Gonzalez-Montero said planning for a larger Parliament had been going for “some time”.
“Now that the election results have confirmed an increase to the number of members we are looking at several options.
“We are confident we will be able to accommodate all members within the Chamber.”
VNP / Phil Smith
Gonzalez-Montero said office accommodation for members and their staff would be “stretched” for a short time, but the new Members’ Building was only a few months away from “practical completion”.
That building – located behind Parliament – was due to be ready to occupy in April next year and had capacity to accommodate around 30 backbench MPs.
“All members should be in fit-for-purpose accommodation from that point,” Gonzalez-Montero said.
Following the 2023 election, 123 MPs sat in the Chamber – a record number at the time. That decreased to 122 following the resignation of National MP Judith Collins.
Collins held the seat of Papakura and stepped down in May and Parliament voted against holding a by-election because it was too close to the election.
The election result also meant high-ranking National Party MPs like Chris Bishop, Paul Goldsmith, Nicola Willis and Gerry Brownlee – Speaker of the House and an MP for 30 years – would likely not make it back into Parliament.
Only resigning or retiring MPs were permitted to give a valedictory speech meaning none of them would get the chance to give a valedictory statement.
Asked if their would be special allowances for valedictories, Wilson said in a statement that normally only MPs were allowed to speak in the House but the House could suspend its own rules or temporarily alter them.
“It could do so to allow former members to address the House.”
Wilson said no such arrangements could be made until the next Parliament opened and members sworn in.
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