Illegally raising rents?

Grant Robertson says he will ‘make an example of any landlords found to be illegally raising their rents to exploit students’.

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From 1 January, the cap on student allowance and living cost loans rose by $50, a Labour election campaign promise.

Since then some students have complained of landlords raising rents to an unreasonable level in response.

Rental prices in Wellington for December were up $30 on October’s figures, according to Trade Me numbers.

Its Property Rental Index showed the median price had risen from $450 to $480 since October, peaking back up to match the record set last January.

If the Wellingtom flat market is anything like Dunedin’s then calendar year leases will be common, and it is common for flats to be cleaned, done up and re let. Annual increases in rental are also likely to be common.

Mr Robertson invited students to get in touch if they believed a landlord was raising rents illegally, and within 10 hours, he said, he had received dozens of reports.

“There are rules in the residential tenancies act about not putting rent up above the market rate, and we are looking very closely at some of the examples that have been put to us today to see if they would breach that act.”

I don’t know what the rules are, but in a normal market prices are set by supply and demand. if prices are too high the market will reject them. I’m not sure how rents can be put above ‘market prices’ if they are being accepted by tenants.

Property prices have been rising, that will put pressure on rental rates.

The government that Robertson is a part of may be deterring people from remaining as landlords or becoming landlords, this will put pressure on rental rates.

Are there rules in the residential tenancies act against government policies pushing up rental prices?