Tenants of quake-damaged Christchurch City Council housing are likely to be spared a rent increase over the next year.
Councillors will this week consider a proposal not to raise rents this year due to the impact of the quakes on previous maintenance cost estimates.
Some 2264 of the 2649 social housing units available prior to the earthquakes were occupied, but most have some earthquake damage and some tenants were living in complexes below the council's normal standards.
Christchurch Mayor Bob Parker said the proposal recognised that concern.
"In light of so much work in progress it is impossible to set a rent increase based on this uncertainty,'' Mr Parker said.
"This is a difficult process and it is appropriate that the council staff recommendation is erring on the side of caution.''
The repair programme was subject to Earthquake Commission and insurance settlements which were not yet finalised.
Council staff have recommended the scheduled rent increase be deferred for a year until the council's asset maintenance cost model has been reworked and the financial implications are better understood.
The rent freeze would result in lost revenue but it was considered the most appropriate course of action given the uncertainty.
Meanwhile, private rents have increased as the number of rental properties in Christchurch falls short of demand, with reports of homelessness and overcrowding as a result.
Earthquake Recovery Minister Gerry Brownlee has denied there is a rental crisis and has said the market would sort it out.
But Mr Parker yesterday told TV3's The Nation there were significant issues in the market and more needed to be done.
"I think there are a number of people who are in what would be for them an absolute crisis,'' he said.
"On rental accommodation my personal view is that we're going to have to intervene, we're going to have to do more. So I guess my honest answer there is I don't think they're doing enough.''
Mr Parker spoke to Mr Brownlee on Friday and raised the issue of council-owned land in the central city.
"I think we should be looking at a way to encourage some private development on that land, looking at both temporary and long-term housing.''
