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COVID-19: Proposed new limits on rent increases during Alert Levels 3 and 4.

Anna
18 October 2021

Photo by James Coleman on Unsplash

A new amendment was proposed to the COVID-19 Response (Management Measures) Legislation to include bans on rent increases.

To future-proof the legislation, assist those affected by COVID-19 lockdowns and avoid the confusion seen in the rental sector with the previous lockdowns, the Government has introduced a bill to restrict tenancy terminations during Alert Level 4. Now another amendment to the RTA is currently being discussed. This time to bring back rent increase freeze.

The amendment proposes that rent not be increased during periods of Alert Level 3 and 4 and the immediate period following (20 days after the expiration of a COVID-19 tenancies order).

There is further movement to apply these restrictions to notices already served before the commencement of the COVID-19 tenancies order but due to start during Alert Level 3 or 4. If the proposed amendment goes ahead, these notices will have no effect, and a rent increase freeze will apply.

You can follow the progress of this bill on the Government website.

The restrictions do not currently apply.

In December 2021 NZ moved away from the alert level system to the COVID-19 Protection Framework (traffic lights). Follow this link to the summary of real estate activities permitted under various traffic light settings

The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.

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