A real estate boss says tighter lending restrictions in the Auckland property market could be good news for Whanganui.
The Reserve Bank is looking at the possibility of new lending restrictions or tightening existing ones such as those on loan-to-value ratios (LVRs) in the Auckland market.
Reserve Bank Governor Graeme Wheeler said imbalances in the housing market were increasing with house price inflation lifting again in Auckland.
Mr Wheeler said debt-to-income restrictions could be one response to rising house prices.
The restriction was used in Britain where most buyers could not get a mortgage higher than 4.5 times their annual income.