Council continues with planned rent increase

The Council will go ahead with this year’s planned 2.8 per cent social housing rent increase to continue with the repairs, maintenance and replacement programme for its more than 2600 social housing units. Rentals in 2010 were increased by 4.3 per cent.

The Christchurch City Council has been providing rental accommodation for people in real need of affordable housing since 1938 and is now the second largest social housing landlord in the country (second only to Housing New Zealand). 

Although its social housing rents are significantly lower than market rates, the Council’s social housing is required to be self funding and not to make a call on ratepayer funds.

“For this reason we needed to continue with this year’s planned rent increase so that we will still be in a position to maintain and replace units in the future,” said Housing and Community Facilities Committee Chair, Councillor Glenn Livingstone. 

Low rent increases were applied for several years, with the result that the Council faced a shortfall in funds required to maintain, redecorate and refurbish units – until a six year programme of increases was agreed by the Council in 2009.

“If we had forgone this increase it would have set the Council’s social housing budget back by almost half a million dollars and had an impact on the rebuilding programme. The increase plays an important part in the Council’s ability to maintain its social housing to the current high level” said Councillor Livingstone.

Following the earthquake, City Housing staff have worked with their displaced tenants to help them find suitable alternative accommodation. Some chose to stay with family and friends, but most are now returning to City Housing Units.