Labour’s rent plan has had many landlords saying they would push up rents if changes come after this month’s election.
816 landlords answered a New Zealand Property Investors’ Federation survey, 73.6% said they would increase rents if a ‘suite of policies aimed at making it harder for them to provide rental properties was introduced,” the federation said.
“More than half of all respondents (54.8%) would increase weekly rental prices between $20 and $40/week.”
The federation said the survey backed BNZ chief economist Tony Alexander that Labour housing policies would put pressure on rental prices.
In his latest economic overview, Alexander said that “Labour’s policy mix has capacity to help constrain the pace of house price rises for lower priced properties by boosting supply. But it will come at the price of higher rents.”
Labour says it will make renting a more stable and healthy experience.
“Labour is committed to restoring the kiwi dream of owning your own place,” said leader Jacinda Adern on September 3. “We also recognise that long term renting has become a reality for more families but the current law creates instability and insecurity for many,” she said, referring to renters being forced to more as often as once a year.
Labour will extend the 42-day landlord notice period to 90 days, limit rent increases to once a year instead of six months, ban tenants being forced to pay letting fees, and “change the law so there is the option of paying a higher bond in exchange for the ability to make a house a home by making minor alterations” Adern said this month.
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