30 July 2025

Healthy Homes Standards – Who Is Complying?

As of 1 July 2025, all new and existing rental properties are required to comply with the healthy homes standards (the Standards).  A 2024 survey by the Ministry of Housing and Urban Development Te Tūāpapa Kura Kāinga revealed that while most landlords are aware that there are financial penalties for non-compliance with the Standards, only 31% knew the extent of possible penalties.  Compounding the problem, nearly half of renters said their home had potential non-compliance issues.

To date, there have been over 300 decisions in 2025 that mention or discuss the Standards.  This article provides a quick snapshot of how the Tenancy Tribunal (the Tribunal) has been handling non-compliance with the Standards.

Why do landlords need to comply?

The Standards are aimed at reducing the gap in quality between owner-occupied homes and rental properties.  The regulations include minimum standards for heating, insulation, ventilation, moisture ingress (dampness) and drainage, and draught stopping, with enforcement of the Standards overseen by the Tribunal.

Are landlords complying?

A survey released in 2024 by the Ministry of Housing and Urban Development Te Tūāpapa Kura Kāinga found that:

• 95% of landlords were aware of the Standards, but only 76% of tenants were;
• 73% of landlords said they had done something in preparation for the deadline to meet the Standards;
• 82% of landlords were aware there are financial penalties for non-compliance, but only 31% of landlords knew the potential extent of the penalties. 64% said the penalties were influential in their compliance;
• 44% of renters believed their homes had a problem with dampness or mould, while 42% had a problem heating and/or keeping the home warm in winter.

What is the Tribunal?

The Tribunal oversees enforcement of the Standards.  Over 300 Tribunal decisions in 2025 contain some discussion around landlords complying with the Standards.

What are the penalties?

Compensation

Where a breach of Standards is found, a landlord can be required to pay compensation to the tenant.  The compensation amount varies depending on the severity of the breaches, and are most often ordered in the form of a weekly rent reduction, for the period of the breach.  In other words, the longer the breach takes to be remedied, the higher the compensation order will be.

Cases where compensation was awarded:

• [2025] NZTT 5191799 – A rental property was found to have a lack of underfloor insulation and ground moisture barrier.  The Tribunal ordered compensation of $1,040 to be paid, representing $20 per week of the tenancy period.  It was held that the landlord had believed it was compliant with the Standards, so no exemplary damages were ordered.
• [2025] NZTT 5156092 – Issues including mould and a broken window led to compensation of a rent reduction of $32 per week, for the 157 weeks of the tenancy (approximately $5,000).

Exemplary Damages

Exemplary damages can also be awarded to the tenant (on top of any compensation), with a maximum penalty of $7,200.

Exemplary damages are reserved for intentional breaches of the Standards, and are viewed as a punitive measure to help deter other egregious abuse of the Standards.  Before awarding exemplary damages, the Tribunal must be satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest.

Cases where exemplary damages were awarded:

• [2025] NZTT 5027846 – The landlord had breached all obligations under section 45 of the Residential Tenancies Act 1986.  The Tribunal followed a District Court decision that held the maximum penalty is intended to be a total award for all breaches.  Accordingly, $7,200 was ordered to be paid along with compensation equal to three weeks rent for the “significant and negative impact the breaches had on the tenant’s use and enjoyment of the premises”.
• [2025] NZTT 5050049 – After a first assessment, a property partially complied with the Standards, but had failed on the heating, insulation, ventilation and draughts.  Following a second assessment, the property failed on those same standards.  The breaches were found to be intentional and $3,500 was awarded to the tenant for exemplary damages.
• [2025] NZTT 5153389 – Failure to install a heat pump in the living area or remedy gaps in doors and windows (despite requests from the tenant) meant that the landlord had intentionally not complied with the Standards, and was liable for $2,400 for exemplary damages.
• [2025] NZTT 5156999 – The landlord agreed to install a heater to meet the heating standard, which was never actioned.  The Tribunal found an unlawful act had occurred and ordered $2,000 for exemplary damages.
• [2025] NZTT 4956715 – A rent reduction of $50 per week was awarded for a failure to install a kitchen extractor fan, totalling $1,400.  Exemplary damages of $2,500 were also ordered for failure to meet the ventilation standard and $2,000 for not meeting the heating standard by failing to install a sufficient heater.

Where to next?

We regularly field questions regarding the Standards, from initial discussions through to Tribunal hearings.  If you have concerns in relation to compliance with the Standards, please contact one of our experts today.

Andrew is a Senior Solicitor in our Dispute Resolution Team and can be contacted on 07 958 7447.