Rent rise hits home

Eighty-year-old Graham Reed is considering selling his car as he faces a 24 per cent rent rise as a social housing tenant.

The Sumner resident may have to give up the car to make ends meet.

"The rise was made at a time when everything, including petrol and dairy, have gone up with a bang," he said. "I will have to run the car just once a week. I remember growing up when we were rationed to 1 1/2 gallons of petrol a month. That is what it looks like now ... I am seriously thinking of selling the car."

Reed said he could manage on the current rent level but would find it harder once the rent rose on July 1.

"I can just manage it at the moment. I have a glass of wine of a night, but I do not drink more than that or smoke or go to the pub. I have broadband as a luxury," he said.

Reed currently pays rent of $217 a fortnight, and receives about $765 a fortnight in benefits before tax.

After July 1, his rent will increase to $269 a fortnight and he will have to apply for a larger accommodation supplement to meet the gap.

- © Fairfax NZ News