On the back of the Insulation Regulations 2016, the Healthy Homes standards (HHS) was released in 2019. It provided a far more comprehensive overview and expectation for the living standards across rental properties in New Zealand.

The HHS covers five areas of the property: ventilation, draughts, drainage, insulation and heating. Even though the Insulation Regulations 2016 received Royal Assent just three years earlier, the expectation for insulation under the new HHS saw the minimum standard in ceiling insulation move from 90mm to 120mm. We asked why in frustration had the level not been set initially at 120mm (especially as this coincided with the Building Code at the time), and there was never any plausible explanation provided. I suppose retrospect is a beautiful thing.

Almost two years since the HHS received Royal Assent in 2019, the first deadline has come and gone. That essentially means that all rental properties rented after July 1, 2021 must meet the five areas of the HHS within 90 days of the tenancy starting.

Utopian Standards

What have we learned since then? Firstly, the standards, especially with heating, appear beyond aspirational and more like a utopian dream. From the outset, industry experts who have installed heating systems in homes for decades knew straight away that the heating capacity as set out within the act was incorrect. The HHS was overstated, and owners are required to install a heater or heat pump well beyond what is needed. This essentially results in many owners having to upgrade pre-existing heat pumps.

Many new builds built since 2019 have also failed to meet the HHS heating requirement; despite being made to contemporary standards and the Building Code. How can this be right? Evidently, it isn’t, and the Government has signalled that there may be a revision to the heating calculation for apartments and new builds.

GVBs

We are also beginning to see the side effects of ground vapour barriers (GVB) in older homes. Interestingly, industry experts have provided data showing 40-60% of the air we breathe in property comes from underneath the house. Market evidence has shown that a GVB does have a positive impact on the air quality we breathe and can help reduce moisture inside the home.

However, one of the unintended side effects of the GVB is that it significantly dries the property out. While this sounds great, if the property is older and has wooden joinery, often we see large gaps appear between floorboards and around window frames. As the property drys out, draughts occur, meaning the property will fail one of the five areas of the Healthy Homes standards.

Having now also completed over 6,000 assessments across properties under management, most properties failed to meet the Healthy Homes standards. After two years of working with owners to make the necessary upgrades, only 22% of properties comply with this new law. Of the properties that did meet the five standards, did this automatically equate to perfect living conditions in the property? Sometimes yes, and sometimes no. The difference came down to the inhabitants and their understanding of healthy living habits.

Measuring Success

Fundamentally, what gets measured gets done. In 1947, the Housing Improvement Regulations came into law, and addressed the exact areas the Healthy Homes standards 2019 also cover. If we are in the same position 72 years later, you would have to assume the legislation from 1947 failed?

Therefore, how will we know if the HHS 2019 is a success? What is getting measured to quantify the extensive cost and disruption to meet the deadlines within the designated timeframe? Is the cost of health care going to reduce per capita as a result of healthier living environments? Will we see a general improvement in our kids’ learning at school? Is our GDP going to increase due to a more productive workforce?

New Zealanders need to see results, and they need to see that the HHS is a worthwhile initiative and investment by the taxpayers. If we do, and we hope we do, brilliant. But if we end up here again in the future, or if we see no positive changes, then the country needs new direction and ideas to solve this problem. Of which there are plenty.

As the General Manager for Property Management at Property Brokers, Will Alexander is passionate about this industry and innovation - focused on implementing solutions that improve operations, customer experience, and business profitability. He is a staunch believer in; people, property and working smarter.