Concern Government policy will make renting more insecure

The Government is being accused of tilting the housing playing field further towards landlords and away from renters.

A Bill re-introducing 90-day no-cause terminations for periodic tenancies has passed its first reading this week.

Morgan, a renter, is tired of having to jump between flats due to issues out of her control.

"It definitely makes us feel really completely insecure and quite powerless," she said.

She signed on to a previous rental property knowing it had been sold, but on the understanding the new owners would keep her and her flatmates on. Yet on the day of settlement, the new owners said they wanted to renovate - so she had three months to leave.

"It really uprooted our lives for a good few months."

She's frustrated by what she says is a power imbalance between landlords and tenants, and comments like this from Housing Minister Chris Bishop last month: "Landlords don't kick out good tenants."

Morgan said: "It seems like all landlords are treated as good landlords and all tenants are assumed to be bad tenants."

Asked whether he stood by that comment this week, Bishop said: "There are going to be scumbag landlords out there, fully appreciate that. And they should have the law thrown at them. But the vast bulk of landlords don't kick out good tenants."

And kicking tenants out is about to get much easier with the upcoming return of 90-day no-cause terminations for periodic tenancies.

"I think it is a pro-landlord and a pro-tenant policy. I think it will lead to more landlords entering the market and ultimately that's a good thing for tenants," Bishop said.

But officials weren't so sure.

One paper prepared by the Ministry of Housing and Urban Development said that, "while the benefit to landlords is clear, the degree to which this option will improve rental supply is uncertain".

"This option will also significantly reduce tenants' actual and perceived security of tenure."

The Greens' housing spokesperson Tamatha Paul is against the policy.

"No cause evictions will do nothing other than make renting more insecure than it currently is."

But Sue Harrison, president of the New Zealand Property Investors Federation, said good tenants shouldn't need to worry.

"[Landlords] are not going to get rid of good tenants. There is no way that's what's going to happen. It is going to be the people who is causing them serious stress and issues."

The legislation also reduces the notice period landlords and tenants must give when ending periodic tenancies and introduces the pet bond scheme - where people pay an extra bond to be allowed to have a pet in the rental.

It passed its first hurdle in the House this week and is heading to a Select Committee where renters and landlords will get to have their say.