Tenants can expect rent hikes of 5%
By Lane Nichols
Thursday Sep 18, 2014
Landlords seek to meet rising costs including rates and mortgage payments
Mr King predicted rents would jump by 4-5 per cent – around $20 a week on average. Photo / Thinkstock
Landlords are warning tenants to expect rent increases of 4-5 per cent as rising interest rates start to bite.
It comes as new figures reveal the average cost of renting a three-bedroom Auckland home has jumped by $23, while a Mt Eden three-bedroom property will cost you $59 more.
But a tenants advocacy group says landlords would be “foolish” to hike rents any further and risk losing good tenants. Experts say the market will dictate whether renters are prepared to pay more.
Ministry of Business Innovation and Employment figures show Auckland house values jumped 11.6 per cent to $720,426, while average rents grew by 3.6 per cent to $456 a week in the year to July. In Wellington and Christchurch the situation was reversed, with rents posting bigger percentage gains than house values.
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