King sees potential pitfalls in state housing shake-up
He said that while the reforms could see more tenants in the market looking for property, the potential transfer of Government property and cash to housing organisations could in effect create Government subsidised competition.
"It may mean that there is more demand for private rental housing, but another one of the plans they've got is that they're looking at giving state houses and potentially income related rent as well to social housing providers," King said.
"That basically gives social housing providers the potential to be able to go to the private finance industry and actually use those assets and cash flow to get loans and build more property, which could be potentially very negative for the private rental industry."
King spoke in the wake of a Q&A interview with Housing Minister Phil Heatley, who said, "We want to focus on those most in need, so what we're going to do is pass cash, some surplus state houses and also surplus Crown land to these housing organisations across New Zealand."
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