LVR restrictions failed to address the supply issue – they only make the housing problems even worse, says Property Institute of NZ.
• In its attempt to cool demand on the housing market, RBNZ decided to put LVR restrictions on first home buyers.
• Yet, such a decision only stopped thousands of kiwis from buying a first home, damaged the market & slowed down the construction of new homes – unable to catch up with demand.
• Now that the governor has announced his resignation, PINZ urges the Gov’t to “immediately modify” the LVR restrictions on FHBs.
• Church says it’s timely opportunity to review RBNZ policy & its effect on the housing market – “they need to be removed right now”.
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