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Home / Business

73.6 per cent of landlords plan rent rises if Labour wins

NZ Herald
13 Sep, 2017 11:39 PM2 mins to read

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Labour leader Jacinda Ardern talks Labour housing policy regarding tenancy laws at the home of the Lipsham family.

A group of landlords has decried Labour's rent plan, saying they would push up rents if changes come into force after this month's election.

The 816 landlords answered a New Zealand Property Investors' Federation survey and 73.6 per cent 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 per cent) 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 rents.

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."

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Labour housing spokesman Phil Twyford said the release from the Property Investors Federation was politically motivated and self-serving.

"It's not even a study, it's based on a few hundred self-selected landlords. It has no credibility," he said.

Twyford said Labour's policies are more likely to stabilise and reduce rents by reining in property speculation and increasing supply.

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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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27 Sep 09:05 PM
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