Luke Somervell: Renters United President on the renters struggling to save for deposits, first-home buyers seeking financial assistance from family

Many first-home buyers are still turning to family for financial assistance to get on the property ladder. 

A new survey —commissioned by insurance company OneChoice— has found almost half of respondents are getting help from the Bank of Mum and Dad. 

Those who are renting say they feel trapped trying to save for a deposit. 

Renters United President Luke Somervell told Ryan Bridge the lack of quality rental properties is making more people wanting to buy their own home. 

He says for a lot of people owning a home is the dream, and a way to get out of renting poor quality homes. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
You'd number out this morning for you. Half of all
first home buyers expect help from the bank of Mum
and Dad when they are going for their first home.
This is a one choice Kiwi Housing survey. It's only
five hundred New Zealanders, but half of them reckon they're
skipping medical appointments to pay their rent. One third of
renters think the cold and damp their cold and damp
home is making them sicker. Luke Somerville is Renters United President,

(00:23):
joins us this morning.

Speaker 2 (00:24):
Hey, Luke, good morning.

Speaker 1 (00:27):
Well do you reckon most renters are saving for a house?
Do most renters actually want to own a house?

Speaker 2 (00:33):
Well? I think I think a lot of people that's
the dream, just because renting is so I was going
to say, can swear anyway, it's not great. Look, it's
not great. People aren't having a good time, and so
for a lot of people, the only way to get
out of that is to buy their own home.

Speaker 1 (00:51):
And the thing with property prices is that now they
are much lower than they were a couple of years ago,
particularly in some of our biggest cities, I mean everywhere
bar Queenstown basically, so it should, in theory be easier
now than it has been in recent times.

Speaker 2 (01:06):
Yeah, I mean you might say that, but the issue
that we if you look at the long view over
the last ten years, I mean I think it's said
twenty one percent since twenty twenty. But even with when
we're talking about rents, I just want to draw your
attention to you know, its rate. It's increased by two
hundred and fourteen, so fifty and ten years for rents.

(01:27):
It's gone up a lot over a long time. And
that's why rent is a feeling squeezed.

Speaker 1 (01:32):
And what do you think driving that looke? Do you
think that that is regulation? Do you think that that
is a lack of supply? And if it's a lack
of supply, why don't we have enough supply?

Speaker 2 (01:42):
Yeah, it's a really good question. I mean I think
I think it's a lot of things. Lack of supply
is a really big issue. Like for now, I'm sure
you've seen there's been a big glut in the construction industry.
So I mean, what what we're seeing often is just
renters are just paying more and more money for the
same you know, damp, drafty homes. It's our housing stock

(02:05):
is really basically decaying as a country.

Speaker 1 (02:09):
What about the changes to healthy homes that was meant
to make them all nice and spick and span. Is
that not the case?

Speaker 2 (02:16):
Well, not really unfortunately. I mean there's there's a lot
of loopholes and basically there's just not enough oversight and
enforcement really. So what we do see is a lot
of people, you know, they go tick tack tech all good,
and then you know you find out, oh, well, why
your renters you know, getting crooked from mold and all

(02:37):
the rest of it, and really no one's kind of
checking to make sure that these things are actually getting
followed through. That's a big issume.

Speaker 1 (02:45):
Look do you reckon if we put more regulation and
more taxes, if we did interest deductibility, do you think
that would mean we have more supply of rental properties
or less?

Speaker 2 (02:55):
Well, look, I think we need to look at our priorities, right,
I mean the problem here rent feel like they're getting
cons because our rents are barely moving or increasing actually,
and then landlords are getting this two point nine billion
dollar handout and tax breaks. I mean, what if we
use that money to build more I don't know, community housing,

(03:16):
kind order whatever, that would actually increase the play and
that would low rents. But this money has just gone
straight into their pockets. I mean. And the problem again
we we've got as renters, right, is that you know,
MPs on average have about two point two homes I
think national last time I checked all throughout together of

(03:37):
them one hundred and thirty six. And I think that's
before we found out the car belts. Bates forgot about
his twenty five properties in the trust. So you know,
we're not really addresing the root cause of the issue, right.

Speaker 1 (03:48):
All right, Logan, I have to leave you there. I
appreciate your time this morning. That's Luke Somerville, Renters United President.

Speaker 2 (03:56):
For more from Early Edition with Ryan Bridge. Listen live
to News Talk said Be from five am weekdays, or
follow the podcast on iHeartRadio