Minister faces grilling over housing red-tape

Housing Minister Megan Woods says there are no quick-fixes to Queenstown's "decades-in-the-making" housing crisis.

Woods, speaking to Queenstown Business Chamber of Commerce members yesterday, detailed the Labour Government's work towards increasing the supply of affordable housing in the unaffordable district.

But it was short-term solutions to the district's rental crisis that audience members wanted to grill her on.

They told the Minister the capacity is there, with around a quarter of homes in the district empty year round, but properties aren't being made available to rent because owners' hands are tied by Government red tape.

Hayley Stevenson, Director of property managers Housemart Queenstown Ltd, told the Minister changes to the Residential Tenancy Act, specifically around ending fixed term tenancies, meant holiday property owners were no longer making their homes available to rent short-term.

Stevenson says she is dealing with a couple that are moving into their car to live, with their two-year-old child, because they had nowhere to go.

"I have had a homeowner come to me offering his house for four months that would be suitable for these people. But I cannot guarantee that owner at the four-month end of that fixed term tenancy that I can hand the house back, because I need a reason to end that tenancy.

"Because our non-reason clause has been taken away from us, with the changes to the RTA, it has really hindered our seasonal supply."

Stevenson says the company used to have about 40 houses over in Wanaka offered as seasonal rentals and there'd be at least that number in Queenstown.

Woods said there is room within the RTA to house seasonal workers, but Stevenson counted that they can change their mind about staying, during the tenancy.

Woods: "Legislative change is something that takes a long period of time, and I'm not making any commitment to that, but I wonder if there's a short-term solution that perhaps the Chamber could be involved in, as there's some people that are so clearly seasonal workers."

Woods was also questioned on reinstating mortgage interest-deductibility for landlords, the potential for transitional housing in Queenstown, as seen in the wake of the Christchurch earthquake, the potential to force residential homeowners to bring their own homes up to Healthy Homes standards, creating parity with the rental market, Kiwi Saver caps, and ways to monitor the more than 1500 Airbnbs, especially those flouting 90-day rules without resource consent.

There were groans when, about halfway through the session, the Minister continued to suggest it was a capacity issue, which would be addressed through building more houses.

By the end, she told the audience there was much she could take away from the session.

"I really wanted to come down and have those conversations, we have the [urban] growth partnership for a reason, and it's because we need to find local solutions as well. It's to talk to you, it's to talk to a range of people, and find out on the ground what people are thinking are some of the solutions," Woods said.

"I'm not here today to announce, I'm here to discuss, but certainly I think there's a range of things that in the future may be able to be implemented." 

Woods with Chamber boss Sharon Fifield at the session

Minister Woods also met with Queenstown's mayor Glyn Lewers and the Urban Growth Partnership, which includes a range of organisations, during her visit.

After the Chamber session, she told media it had been an "incredibly useful" visit.

"Believe me, the housing crisis, as Minister of Housing, I understand the complexity and seriousness of it every single day," she said.

"It manifests in different ways in different parts of the country, but there is no doubt we are in a housing crisis that has been decades in the making and our Government has made it a priority to make sure that we are doing everything we can to increase the supply of houses in New Zealand, but most importantly, to increase the supply of affordable houses in New Zealand."

Woods lauded the work of the Queenstown Lakes Community Housing Trust and highlighted fast-track consents, including Ladies Mile and the Silverlight Studios in Wanaka, which will include worker housing.

She confirmed she will look at the Residential Tenancies Act with regards to periodic tenancies.

"But we do want to ensure that we're not just giving someone a roof over the head for a couple of months, and then they're back in the car or homeless again. So it's about getting that balance right as well.

"...if there really are any landlords that want to help out, and help solve this crisis, and they, say, only want to rent it for six months, then I'm sure there's a pool of seasonal workers here in Queenstown that we could do some matching with."

And Woods was also asked about build-to-rent schemes, which Porter Group at Remarkables Park is investigating. 

"This is something that I've already made changes around, and made sure that we've made interest-deductibility a permanent feature of build-to-rent, because I see it as a critical part of how we solve the housing crisis."

Woods said the Ministry has also issued guidance to developers over whether overseas investment in NZ build-to-rent developments was prohibited by the Overseas Investment Act.

"I have legal advice that is not the case. We've issued guidance. I'm getting feedback that some developers still don't fully understand that."

Woods says her officials, the Property Council and the developers' lawyers will get together in one room to "thrash this out."

"If we have to make changes we will, but I don't think we do. I think it's a matter of making sure that we've got good information for people that want to make that investment, that our government is the party that has prioritised build-to-rent."