Labour's newly announced proposals to protect tenants could result in higher rents, the executive officer of the New Zealand property Investors' Federation is warning.

Labour would abolish the right of landlords to evict renters for no cause under changes leader Jacinda Ardern is promising to make to tenancy laws.

Landlords will still be able to terminate tenancies for just cause, such as rent arrears or damage to the property.

At present, the standard notice period is 90 days and landlords can give that without having to provide a reason.


Labour would also abolish the lesser 42-day notice period which is allowed under some circumstances, such as selling a property with vacant possession, or if the landlord wants to move in, and require all terminations of tenancies to be at least 90 days.

Ardern announced the overhaul of tenancy law in Henderson in the living room of a couple, Ed and Amanda Lipsham, and their two children, who have moved four times in the past three years, and eight times in the past 12.

Andrew King, executive officer of the New Zealand property Investors' Federation, told the Herald he thinks the plan will backfire.

"it's going to put people off being landlords," King said. "People already can't find rentals, and this will push up prices."

"Why would we restrict supply when what we need is more?" King said.

"Everything they're doing is the opposite of what they should."

King said the 90 day no reason notice period is often the only recourse for getting rid of bad tenants.

Landlords, he said, have a responsibility to not just their tenants, but their tenants' neighbours, and not being able to evict bad tenants would punish the good ones.

One aspect of the proposals King welcomed was the $2000 grants to landlords for insulation and heating, saying the cost of insulation has almost doubled.