The Summerset complex is visible in the distance, seen from the Maypole company subdivision.

Regular readers know we have been highly critical of the whole institution of “Licence to Occupy” retirement villages which are almost exclusively operated by property development businesses who see their tenants as financers and otherwise simply people to put up with. To get their licence to occupy tenants have to pay the company the ‘market value’ of the house they want to live in, but they don’t get the title to it — that remains with the property company. Selling the ‘licence’ back to the company when the tenants leave or want to leave is not a simple process. A big ‘refurbishment’ fee (25-30% of the value at the time) gets charged and most if not all the capital gain is kept by the company. In addition there is a monthly service fee.

In Waikanae this issue is particularly poignant as our guesstimate is that 1,200 people now live in one of the four major complexes: Bupa Winara, Rymans (Charles Flemming), Parkwood and Summerset. Arvida also has a presence in Waikanae Lodge and wants to build more in the Maypole company subdivision.

In September last year we posted about a petition to the Government to change the law to recognise and accommodate the needs of people and not business profits.

The government has done that and now there is a Retirement Villages Act review

The Minister’s media statement:

New Zealanders deserve clarity, fairness, and straight-up information when they move into a retirement village, Associate Housing Minister Tama Potaka says.

“The Government is taking the next step to strengthen protections and give residents and their whānau greater confidence, which is part of our wider focus on fixing the basics and building the future.

“For too long, residents have faced uncertainty, especially when moving out and waiting for their money to be repaid.

“We’re fixing that. These changes put people first by setting clear expectations and making the whole system more transparent,” Mr Potaka says.

Progressing the review of the Retirement Villages Act is part of the National – New Zealand First Coalition Agreement and the Government’s reforms provide a pragmatic and balanced response to key issues within the sector, Seniors Minister Casey Costello says.

“We know the vast majority of retirement village residents are very happy with the lifestyle and amenities offered within villages,” Ms Costello says.

“The changes we are making will address concerns around fairness and provide certainty to residents and their families.

“At the same time, the changes recognise the important role that retirement villages play in providing housing options for older New Zealanders and that around two-thirds of them provide aged care facilities.”

The reforms will make legal documents easier to understand, require operators to be upfront about what they offer, and set clear responsibilities for the chattels they own. A new independent disputes scheme will also give residents a simple, accessible way to resolve issues.

A major focus is on reducing the stress families face when a loved one leaves a village.

“Family deserve certainty during what is often a challenging time,” Mr Potaka says. 

“These steps deliver that certainty and strengthen the rights of residents, while supporting the sector to grow and innovate for the future.”

Key improvements include: 

  • a process for former residents to apply for early access to funds in situations of specific need
  • interest being paid after six months if a unit remains unlicensed
  • repayment of funds no later than 12 months after a unit is vacated
  • weekly fees and deductions stopping immediately when a resident vacates.

“These are practical, balanced reforms that reflect the feedback of residents and operators.

“Retirement villages play a significant role in our housing system. We’re putting in rules that are fair, transparent and built to last.

“The Government thanks residents’ representatives, operators, and the Retirement Commissioner for their sustained advocacy and constructive engagement throughout this review.

“More than 11,000 New Zealanders took the time to share their experiences and expectations, and that level of engagement has directly informed the decisions announced.”

The Bill is expected to be introduced to Parliament mid-next year. The Select Committee process will provide another opportunity for residents, families, and operators to have their say.

Priority areas and changes 

The review is focusing on three priority areas based on concerns raised over a number of years by the Retirement Villages Residents’ Association, consumer advocates, and residents themselves. These are:

  • maintenance and repairs of operator-owned chattels and fixtures
  • complaints and disputes
  • capital repayments when residents move out of a village. 

A more focused approach means that some topics in the 2023 discussion paper with a lower impact on residents, or are too complex to progress are now out of scope.

These include introducing minimum building standards and additional monitoring and compliance requirements by government agencies.

Next step and time frames

Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development will continue to brief the Minister over 2025. At this stage any amendment bill will likely be introduced in the next parliamentary term.

A summary of the 11,000 submissions on the Retirement Villages Act review discussion document is expected to be available on our website in the coming months. 

Read about the Retirement Villages Act, regulations and codes