A UK build-to-rent housing model that treats residential tenancy similar to commercial tenancy could be one answer to New Zealand’s inadequate rental stock.
A recent BRANZ study called “Building to Rent”, published as part of the Exceeding the Minimum research programme, cites the UK model as a way to help provide more affordable rental housing of better quality.
BRANZ General Manager Industry Research Dr Chris Litten said the study looked to answer the research question: ‘why don’t landlords choose features that exceed the minimum of the Building Code and what are the enablers for changing this?’
The study aim was to identify both the barriers to an improved rental stock in this country and the potential solutions, he said.
Other suggested solutions include Real Estate Investment Trusts (REITs), which provide capital for development and long-term ownership of real estate assets, and Energy Performance Certificates (EPCs) to encourage landlords to undertake energy-efficient improvements.
Problems and Barriers
Real Estate Investment Trusts
Energy Performance Certificates (EPCs)
Dr Litten said about 35% of New Zealand households live in rental accommodation and this statistic is much higher in our major cities, tourist centres and amongst younger New Zealanders.
In addition, the number of people aged 65 years or over in rental housing is likely to more than double between 2013 and 2038, so some rental stock will need to accommodate those with disabilities.
“Meeting future rental housing demand and requirements is going to be a challenging task. However, it also provides an opportunity for landlords and the Government to look into solutions for the rental industry. Looking at replicating Energy Performance Certificates, promoting REITs, or investing in different models to deliver rental housing could lead to an improved rental stock.”
The Building to Rent research report was funded by the Building Research Levy. The full report can be downloaded at www.branz.co.nz/etm
For queries about this research study or the work we do at BRANZ, please contact:
DDI: 04 238 1371