Rental homes in demand

Mosgiel is experiencing an unprecedented demand for rental housing which the town cannot meet, and those in the property management industry say some families could be on waiting lists for rentals for up to three months.

Otago Property Management managing director Sonia Thom said this time of year was traditionally the quietest time of the year in terms of people looking for rental properties, but at the moment she was still receiving calls from up to six people a day, asking if there are any rental properties available in Mosgiel.

''Normally we would have about 20 Mosgiel houses available and ready to be rented.

''At the moment, we are renting properties before we can even advertise them in our windows.''

Ms Thom said she had a waiting list with 15 people on it, who were looking for good-quality homes at the moment. Many of them were elderly people, looking for two-bedroom town houses.

''Historically, there were more town houses available than demand, but at the moment, we've got a real shortage of them.

''This is an unprecedented situation. I've been in property in Mosgiel for 10 years and I've never seen anything like this before.''

Anyone looking for a rental property in Mosgiel before Christmas was unlikely to find one, she said.

''The waiting list means people could have to wait up to two to three months for stock to become available.''

Ms Thom believed one of the main reasons for the demand was the change in mortgage lending, which was causing young people - particularly first-time home buyers - to stay renting longer.

She said the good-quality schools in Mosgiel were attracting many Dunedin families.

Some of them were building new houses in the area, and they had sold their Dunedin houses and were renting in Mosgiel for six to 12 months while they waited for their new house to be finished, she said.

''Then there's the climate. It's flat and it's 2degC warmer than Dunedin on average.

''And there's better quality of rental stock in Mosgiel.''

LJ Hooker licensee Paul Anderton said he, too, had noticed a significant increase in demand for rental properties in Mosgiel.

He said demand had been growing for the past couple of years, and the situation had been exacerbated by the increase in house prices in the area.

He said anecdotally, three- to four-bedroom houses were fetching about $320 a week, whereas previously they fetched about $280 a week.

Edinburgh Realty operations manager Jake Wright believed demand for rental properties was increasing in Mosgiel because public perceptions of the area had changed.

''There's a perception that Mosgiel is a place where elderly people live, but a lot of families are living there now.

''There's also a perception that Mosgiel is further out of town, but the new motorway has made it much quicker for people to travel in to town for work. A lot of people from overseas like the peace and quiet, and the rural lifestyle. Compared with places like the United Kingdom, South Africa and Australia where they come from, 15 minutes to town is not long for them.

''In fact, some days it can be quicker to get to the city centre [in Dunedin] for Mosgiel people than people living in St Clair,'' Mr Wright said.

Ms Thom said there did not appear to be an easy fix for the situation.

''Literally, we need more housing stock.

''Hopefully, there will be more come available in the new year.

''I'm just so blown away at how well Mosgiel is doing at the moment,'' she said.