Trust House rent increases on hold

Trust House has decided to hold off on increasing rents for tenants in its community housing. Photo / Dean Purcell

Trust House has decided to put proposed rent increases on hold following feedback from the community.

The Masterton-based company, which owns community housing and close to 100 properties in the Tararua District, had proposed rent increases starting in April.

Some of the properties affected were likely to be in the Tararua District. Photo / Leanne Warr

Around two-thirds of the properties in the Tararua District owned by Trust House were in Dannevirke.

While some tenants were eligible for a Government rent subsidy which would see them pay only 25 per cent of their income, 189 tenants were not.

The company received backlash and criticism from Wairarapa MP Kieran McAnulty over the proposal, as he was concerned at the impact it would have on the community.

Trust House chief executive Charles Kaka said the intention of the increase was to bring rents in line with market rentals as part of a plan to invest $50 million in improving the quality of existing housing and build new housing.

“We have been working with the Ministry of Housing and Urban Development, Kāinga Ora and the Ministry of Social Development for the past year to ensure that if our rents were aligned with market rentals, any government support our tenants were entitled to would be available to them.”

They sent out letters to those tenants affected by the rent increase issuing 60-day notices on the intention.

Kaka said at the time, the trust was confident those tenants would qualify for an Income Related Rent subsidy, and they now understood this was not the case.

“This uncertainty has caused stress to them, and we are very sorry for this.”

He said causing stress was not the intention, and they were now going to put any rent increases on hold while a review was carried out of improvement plans and how housing was assessed for market rents.

“It will also include working with Government agencies to ensure our tenants are receiving all their entitlements and subsidy support for their housing needs.”

Kaka wanted to reassure tenants that the trust would take some time to review and refine the Housing Improvement Programme given they now had this new information.

The next step would be to hand-deliver letters to affected tenants to let them know those 60-day notices were being rescinded, he said.

“We will also be talking to our tenants once we have completed the review and have a plan for moving forward.

“This will include talking about how we can improve the quality of our housing and build new housing while ensuring our tenants are not disadvantaged and are well supported.”

Trust House was committed to improving the quality of Tararua housing and building new housing to meet the needs of the community.

Kieran McAnulty was concerned about the impact of the rent increases, and was happy to see Trust House had a rethink. Photo / Mark Mitchell

McAnulty said the decision was “brilliant”.

“I think it’s a huge relief for the whole of the Tararua District.”

He said the proposed rent increases were unaffordable and posed a “serious threat of hardship and poverty that Tararua District could do without”.

“It would increase the chance of crime; it would lower the amount of money being spent on local businesses.

“I think it’s just brilliant that they’ve seen sense and decided not to do it.”