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Home / Bay of Plenty Times

Soaring rents are hitting people hard

By Carmen Hall
Bay of Plenty Times·
25 Jun, 2015 07:25 PM4 mins to read

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People are going without meat, slashing their food bills and not heating their homes to combat soaring rents in the city, Bay social agencies say.

Others have ended up homeless or resorted to living with friends or in cars and garages.

Yesterday the Bay of Plenty Times reported target="_blank">Tauranga rents increased 9.7 per cent - a bigger hike than Auckland, Waikato and Wellington, according to new figures from Trade Me. The average median rent jumped from $360 in May 2014 to $395 in May this year.

Merivale Community Incorporated general manager Rachel Palmer said it had noticed an increase in people moving out due to high rents, she said.

"Then they can't get back into a new house and they can't meet the bond or increased rents.

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"We are aware of six families in Merivale that are homeless with kids being housed at friends and people still living in cars and garages."

Some that have taken in the homeless have 13 people in the house putting them at risk of losing their homes and increasing their financial stresses.

Rachel Palmer, Merivale Community Incorporated

"Some that have taken in the homeless have 13 people in the house putting them at risk of losing their homes and increasing their financial stresses."

Many people in the community were also limited to eating meat one or two days a week and living off porridge, she said. "It's hot, cheap and feeds a lot of people."

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Others were going to the community centre to warm themselves in the sun through the windows, she said.

Tauranga and Western Bay of Plenty Grey Power president Christina Humphreys said pensions had increased only 2 per cent and some elderly would scrimp because they could not afford to put the heater on.

"They will wrap themselves in blankets and get a hot water bottle and go off to bed early."

As well, the availability of council flats was shrinking so older people had to compete for market rentals, she said.

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Tauranga Budget Advisory Service manager Diane Bruin agreed and said more elderly were seeking help.

"Rents were moving up there," she said and even an extra $20 per week would have an impact.

Families were likely to look at their food budget to make their money stretch, she said.

"They might reduce the amount of meat they might put into a meal. It's quite an expensive commodity ... a lamb roast is actually becoming a luxury item."

Avenues Probus Club secretary John Gauld said several people had told him they could not afford to go on outings because of rising rents. One woman spent her day wrapped in a rug because she could not afford to run her heater, he said.

"Quite a few are finding it hard to make ends meet ... They are doing it tough trying to live on superannuation."

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Tauranga Property Investors Association president Grant Harris said the lack of supply and high demand was pushing rents higher.

If landlords were running their investments as a business it was reasonable to charge market rates but theys sometimes opted not to in an effort to retain a good tenant, he said.

Bay property investor Lindsay Richards said yields for landlords in Tauranga had reduced as house prices were rising faster than rents. He looked after 18 properties in the region and said he reviewed rents every six to eight months and preferred to put it up in small amounts.

Top heating tips
•Let the sun heat your home during the day, shut curtains about 4pm so the warmth doesn't escape.
•Get rid of draughts, close doors and use door stoppers if necessary.
•A small radiant ceramic heater may be an option if it's just you. Place it in front of you on a low heat.
- Trustpower

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