Renters fear that they will be worse off under the new Government’s housing policies, which property experts say favour landlords and investors.
While National’s plan to allow foreign buyers back into the market was shut down during coalition talks, the new Government is still planning a suite of housing reforms.
These include swapping the 10-year brightline test for a two-year one and phasing in the return of mortgage interest deductibility.
This means investors will eventually be able to claim back 100% of their home loan interest costs against rental income.
Kristin Sutherland of the Auckland Property Investors Association said there’s a lot of pressure on landlords with increasing costs stemming from the removal of the ability to claim interest.
“When it actually finally starts to come in, we’ll see some easing of that cost pressure on landlords.”
Renters United president Geordie Rogers said that it will be a tough time for tenants as there are not enough rental properties on the market.
“No landlord is going to opt in to passing on a saving when they could just be pocketing that themselves, so it’s very unlikely we're going to see any relief for renters any time soon.”
No-cause evictions are also back, meaning landlords can end a tenancy with 90 days’ notice without reason.
Rogers said that will see more people getting kicked out of their homes.
“It is going to feel like you’re living in someone else’s house, you can’t set down roots.”
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