Imposing a rigid warrant of fitness on New Zealand's rental properties would increase costs for landlords which would be passed on to tenants, Prime Minister John Key says.
Some landlords could pull out of the market altogether, which would make the housing shortage even worse, he believes.
Labour and the Maori Party have called for warrants of fitness for state houses and private rental properties following the death of Auckland two-year-old Emma-Lita Bourne.
The little girl died in August last year after suffering from a form of pneumonia - and a coroner's report said the cold, damp house she lived in could have contributed to her ill-health.
"The warrant of fitness concept sounds really good, but when you delve into it, it's more challenging," Mr Key told reporters on Monday.
"How do you administer it? It only comes to the surface when there's a dispute, and if it's going to be administered by the state, there would be a lot of people walking around with clipboards."
Finance Minister Bill English said on Sunday the government wouldn't support "extreme measures" for raising the standard of rental properties.
He said the government wasn't likely to adopt Labour's healthy homes bill, which would set minimum standards for rental properties, if it's drawn from the member's ballot and comes up for a first reading in parliament.
Mr English said the government was trying to balance improving standards with not taking houses out of the rental market, or driving up rents.
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