The family living in a so-called 'swamp house' in Papakura are no longer on notice to vacate the property labelled by Housing Minister Phil Twyford as 'third world'.
Following reporting on Checkpoint, Auckland Council deemed the Papakura home insanitary and unliveable, and gave landlord Aven Raj 10 days to remedy severe drainage flooding.
When it rained, a swamp formed underneath the home, making it damp and mouldy, and causing the property to flood.
Dawn Robbie, who lives at the home with her partner and two young children, was issued with a 90-day notice.
But today the company that manages the home, Noble Property Management, said the notice had now been lifted.
John McCracken, from Ray White Papatoetoe, said issuing the notice was not thought through.
"The tenants felt obviously from all the reports that this was putting a hammer over their head, effectively, trying to force them out of the property, so this is why we said to them 'this is the best thing that can happen is withdraw the 90-day notice so there is no pressure'. It was probably done without thinking through all the connotations."
The council has also lifted its insanitary notice.
However Tenancy Services - a branch of the Ministry of Business Innovation and Employment - is considering whether or not to prosecute the landlord.