New Zealand / Housing

Hastings Mayor mindful of impact of new rate rises on elderly tenants

21:03 pm on 2 November 2023

Mayor Sandra Hazlehurst says residents will be invited to attend information sessions with the council housing team to talk through the changes. Photo: RNZ / Tom Kitchin

Some Hastings seniors are facing having their rents double from early next year.

Those living in 220 homes across nine council senior housing complexes in Hastings, Havelock North and Flaxmere will be paying $260 a week from the end of January.

That is up from $117 for longer-standing tenants, or $178.50 for anyone who had moved in since July last year.

A housing review found the existing rents were not enough to keep the service sustainable in the long-term, council said in a statement.

The new policy "ensures that senior housing goes to people based on need, remains affordable and is financially sustainable for the benefit of residents, council and the wider community", it said.

There had been a significant increase in demand in recent years - the waiting list is currently sitting at 250 people - along with increased costs, including insurance and maintenance, it said.

The new policy and rent increase involved some challenging decision-making for council, mayor Sandra Hazlehurst said.

"Our older people are very important to us, and we know that it's going to be very unsettling for some to learn of these rent increases.

"We are working closely with Ministry of Social Development to help our residents access any central government-funded accommodation supplements they are eligible for, so the effects on them personally can be minimised."

Residents would be invited to attend in-person information sessions with the council housing team to talk through the changes, she said.

"For those on a basic superannuation income it's expected they will be able to get a higher accommodation subsidy to help them meet the new rents.

"Each case, however, will be different depending on people's individual circumstances."

Since 2014, rent increases were about two percent annually apart from in 2020, when the government put a six-month freeze on rent increases due to the Covid-19 lockdown.

The new policy also raised the age of eligibility for a council senior housing unit from 55 years or older to 65 years or older, which was in line with other councils.