Labour says it won't raise state house rents

Labour said on 30 June it will not raise rents for state house tenants or increase housing support payments, according to RNZ.
The party ruled out two options that had been discussed: lifting rents for people living in state houses, and expanding the Accommodation Supplement (cash help for low-income renters). Labour has promised neither of these changes will happen if the party forms the next government.
Chris Hipkins, Labour's leader, has spoken about housing before. In a speech in March 2025, he said Labour supports helping renters afford warm, safe homes. He mentioned housing again in November 2025 at the Labour Party Conference as part of the party's broader plans.
Kāinga Ora is the government agency that owns and runs state housing. Between 2020 and 2024, it aimed to spend $11.2 billion building state houses, with a target of 8,250 new homes. A government review published in May 2024 examined Kāinga Ora's finances. That review started a discussion about how much state housing costs the government and who pays for it.
State house tenants pay roughly 25 percent of their income as rent — not the full market rate. The government covers the rest. Labour's announcement means this system stays as it is.
The Accommodation Supplement is money paid to people renting privately. Labour has now said it will not raise rents for state house tenants and will not expand this benefit. These are linked: if the government changes one, it usually affects pressure on the other.
For people following Labour's housing plans, this is the clearest statement the party has made since August 2024, when Hipkins spoke to local government leaders about spending on schools, hospitals and housing. The 30 June announcement is more specific — it names what Labour will not do.
What Labour has not explained is how it will pay for keeping rents and benefits unchanged, if not through raising either one. This is something the party will need to answer as the election approaches.


