A new report on the state of Dunedin's housing shows basic rental standards have worsened over the past decade.

Presbyterian Support Otago have released 'Out in the Cold', which surveyed low income private rental housing measuring safety, soundness, suitability and value.

Just 23 percent meet those standards, dropping from 36 percent in 2004.

CEO Gillian Bremner says potential rental warrant of fitness legislation could set the bar too high, but it's clear this is a serious issue that needs urgent attention.

"In terms of Dunedin we need to carve our our own solution to the problems that we have down here. So we have to come up with something that I think is reasonable and have every expectation that it actually is undertaken."