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LEGISLATIVE CHANGES NEEDED FOR QUEENSTOWN RENTAL HOUSING SHORTAGE

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February, 2023

National Party leader Christopher Luxons promising to make
legislative changes to help the rental housing market.
Luxon tells Mountain Scene the private rental markets been
incredibly frustrated by the governments policies around
interest deductibility and the bright-line test which, essentially,
means if you sell a residential property within certain timeframes
the vendor may have to pay income tax on any gains.
Well pull the bright-line back from 10 years to two years, and
well restore interest deductibility, because its a legitimate
business expense, he says.
Rents across the country have risen by about $150 a week under
this government and I think a good part of that can be attributed
to the interest deductibility and the bright-line test, which are big
disincentives for landlords to rent houses they add a huge cost
and drive up the rents, which makes it very difficult for people to
be able to afford them.
If we can get that private rental market working, with good mum
and dad investors as it was, I think that would be very helpful.
Arrowtown-based regional economist Benje Pattersons recent
report on the housing market found, based on new homes
consented, and factoring population growth, there were more
than 1000 new homes consented than were needed last year in
the Queenstown-Lakes over the past three years, that numbers
2157 homes.
Despite that, Luxon believes creating more housing supply is key
to solving the rental housing crisis.
If people cant afford a home, then they drive into rentals, if
they cant get into rentals they drive into state housing and social
housing and, ultimately, emergency housing.
While he appreciates there are dwellings available in the
district, he maintains the issue is theres not enough affordable
housing for people in Queenstown, for example.
You think about all the hospitality workers we desperately need
here, think about all the teachers, police officers, nurses, people
who have good jobs on average incomes, its really difficult to be
able to get ahead and find good, affordable accommodation.
Youve got people with very expensive homes here, that are
holiday homes & [and] Im sure that if they were charging the
rents that they need to charge for them, you wouldnt recover
that cost anyway.
Luxon says, short-term, build-to-rent products are a big part of
the solution, but long-term, there has to be a single-minded focus
on building more houses.

Source: Mountain Scene