Budget 2015: Income-related rent subsidies increase

Social Development Minister Paula Bennett. Photo / Getty Images

An extra 3000 tenants will be entitled to the income-related rent subsidy under changes outlined in the Budget.

Social Housing Minister Paula Bennett said the change would increase the number of available subsidies to about 65,000 tenancies by 2017/18, helping those most in need.

And changes to KiwiSaver mean membership in a complying superannuation scheme will now count towards the three-year eligibility for first-home withdrawals, though the number of people affected was unavailable last night.

"This means more KiwiSaver members have access to their savings to assist with the purchase of a first home."

The Government has committed $35 million in new operating expenditure towards implementing its social housing reform policy, which will see a major rejig in the ownership of state homes and provision of social housing.

Mrs Bennett said putting tenants first and promoting housing independence was central to the Government's continued investment in social housing.

"Budget 2015 ensures the Government can take the next crucial steps to provide more social housing for those New Zealanders who most need it.

"Housing needs range from emergency and social housing right through to affordable housing and we are focused on helping people on that journey to housing independence where appropriate."

She said the social housing reform programme, announced in January, included initiatives to increase the supply of social housing and better match tenants to properties that fitted their needs.

As part of the programme, the Government is transferring 2800 state houses in Tamaki to a redevelopment company to build a mix of social and private housing.

On top of the $35 million in new operating expenditure over four years, about $30 million would be reprioritised from funds previously earmarked for capital grants through the Social Housing Fund.

"The Government is encouraging more innovative and diverse ownership of social housing by growing the community housing sector. Consultation is underway to transfer between 1000 and 2000 Housing New Zealand properties to registered Community Housing Providers by the end of this year.

"We are making a clear choice to support people, as opposed to being single-mindedly focused on how many properties the Government owns."

Community housing providers were closer to tenants, knew the communities they worked in, and could better provide wrap-around services which many tenants needed, Mrs Bennett says.

Meanwhile, the Salvation Army said it supporting moves to free up Auckland land for to build more affordable housing.

"With insufficient affordable, social and emergency houses, particularly in Auckland, this announcement does help to incentivise organisations to focus on addressing the Auckland housing supply crisis."