Accidental landlords flooding the market
5:00AM Thursday August 07, 2008
By Anne Gibson

Auckland rents are tumbling as disappointed vendors pull their houses off the market and flood the city with flats.

Barfoot & Thompson, the city's largest agency chain, said yesterday that average weekly rates had dropped from $391 in June to $384 last month, a trend it attributed to disappointed vendors. The firm also warned landlords that rising supply has decreased rental returns, making it cheaper for people to rent.

Around 460,000 houses in New Zealand are rented to more than one million tenants and Barfoot manages 8100 Auckland flats, houses and units for 7300 landlords, making it one of the city's largest rental agencies.

It attributed the rent drop to the increase in rental accommodation throughout the city as vendors become landlords in a show of disappointment in the state of the housing market.

Peter Thompson, Barfoot's managing director, said the supply had risen so landlords were dropping rents on places already let by about 5 per cent. This was a response to the market and a move to keep tenants, he said.

More here.