Rental increases linked to unit size

Dunedin City Council staff have come up with a new proposal for rent increases for council flats, with the rise depending on the size of the unit.

The council's pre-draft budget for the next financial year included a flat $9-a-week increase, after staff indicated an extra $400,000 was needed because of rising costs.

The council has a break-even policy for its community housing, which means they have to pay for themselves, without being subsidised by ratepayers.

Staff were asked by councillors last week to come up with a more equitable way to raise rents, and property manager Robert Clark's report to Monday's annual plan meeting suggested an $8 increase for bedsits, $12 for double partition and double separate units, and $15 for two-bedroom units.

An initial suggestion the increases should be based on location and quality posed "a number of operational difficulties", and was not proceeded with.

david.loughrey@odt.co.nz

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