Housing New Zealand buys and builds new homes through a range of programmes.
Our buy-in programme involves the purchase of suitable houses from the property market which are then let immediately after settlement. Buy-ins occur in places where the cost of building new housing exceeds the cost of purchasing existing housing.
Houses that are surplus or inappropriate to the needs of one area are sometimes shifted to areas with high demand for that type of housing. It usually involves the relocation and refurbishment of an existing Housing New Zealand house from a redevelopment site.
State housing developments during the 1940s, 1950s and 1960s tended to be large-scale. Land was not at a premium during this period and houses were developed with large backyards and spaced well apart.
Redevelopment occurs in high-demand areas where older properties offer development potential and/or where properties have become obsolete or very run down.
Redevelopment often involves subdividing existing Housing New Zealand properties, where a single house is added to the back of a site.
We also undertake comprehensive redevelopments involving large numbers of properties with multiple housing sizes and types. Redevelopment can use either a new construction, relocated houses or a combination of both.
We redevelop sites in a responsible manner, taking into account the concentration of state housing and the impact on the community. We also consider maintenance, modernisation and energy efficiency upgrades as part of the redevelopment proposal.
New builds involve the purchase of newly constructed properties from builders or developers in the form of house and land packages.
They are usually standalone houses in new subdivisions but can be medium or high density units. New builds include any new construction on land not previously owned by Housing New Zealand. Most of our new builds are in Auckland.
Housing New Zealand sometimes leases privately owned properties to help boost the amount of affordable housing available in areas of high demand. We lease newly constructed properties and existing houses.
We typically lease properties for a term of between two and ten years, often with rights of renewal. The lease payment to the landlord is set at the market rent, less an agreed margin. The landlord remains obliged to pay for maintenance, rates and insurance.
Housing New Zealand has the right to sub-let the house to its tenants, but it must cover its tenancy management, vacancy, bad debts and damage costs.