Renters have been hit hardest by the housing crisis. Not only are they locked out of the buyers market due to ever increasing rents, but the severe lack of supply has left many with no choice but to live in substandard, overcrowded housing. These new policy announcements do nothing to help us in the short term.
“The policy falls short of delivering any change to over one third of NZ’ers currently in rental properties. The government has the mandate to bring real change for over a third of the country by implementing a rent freeze, or rent control. But they consciously chose not to.”
“If the government was serious about fixing supply they would drastically increase funding for Kāinga Ora, not only to keep up with current demand, but forecasted demand. The past 4 decades have shown us that the private market is unable to keep up. The announcement today made no additions to the 14,400 homes already promised.”
“Claims by landlords that new taxes announced would lead to increase in rents did not pass the sniff test.”
“Landlords consistently increase rent regardless of the expenses they face. We wanted to see the government limit the amount rent can be increased to the value of improvements to the property or to inflation. Our full recommendations are available in our Plan to Fix Renting”
“Landlords are mostly exempt from the brightline test extension. The immense capital gain they have made over the past few years will continue to go untaxed.”
“For decades renting your property has been a risk free investment, guaranteed by consecutive governments. All investments come with risk, and it’s time we acknowledged that.”
“Businesses borrow money to create circulation in the market. They employ people and they produce goods or services. By and large landlords don’t fall into this description. Landlords will argue not being able to deduct interest as an expense will ruin the rental market, when they hardly contribute new builds to it anyway”
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