The country's student union is blasting Wellington landlords for allegedly taking advantage of desperate students.
The Union of Students' Association has had reports of rents being hiked in Wellington after the Government boosted the living costs allowance.
"We have heard reports particularly here in Wellington that some landlords are taking the opportunity to increase rents because of that $50 increase," says president Jonathan Gee.
Mr Gee says some students are returning to Wellington almost a month early in a bid to find a flat.
"We're at the whim of landlords at this stage because of the housing crisis, because there's limited supply and because there's so many people looking for rental properties," he says.
Mr Gee says the Government needs to urgently tighten rental laws to give tenants greater rights.