Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Labour needs to front up on housing policies

Labour needs to front up on housing policies

To assist voters in their decision making on September 23, Labour needs to front up on the cost of their housing policies for rental property providers and their tenants.

In last week’s economic overview, BNZ Bank Economist, Tony Alexander, pointed to two Labour policies that he believes would lead to higher rental prices.

"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" says Alexander.

Although Labour continues to say it isn't their policy, they have all but confirmed they will introduce a capital gains tax on all assets apart from the family home.

Alexander states that a capital gains tax means rental property owners will hold on to their properties for longer. "That means the policy will tend to place upward pressure on rents" says Alexander. Another tax change is ring fencing rental property losses, adding $4,084 per year to the cost of providing the average property as a rental home.

“And because negative gearing is usually only a short-lived situation for long-term investors be they large scale owners or small scale Mum and Dads, it is possible the policy will lead to less rental accommodation being built and made available,” says Alexander

Labour’s extension to National’s Minimum Standards law for rental property will require many properties to have insulation top ups costing thousands for a 5% increase in efficacy. The same policy will make heat pumps a requirement for every rental property regardless of whether this is the best source of heating or if it is what tenants want.

Labour has tried to offset the insulation and heating costs with a $2,000 grant. However they have not provided detail of how this grant will work. Current insulation grants have tended to double the price, meaning they effectively provided no benefit at all.

When proposing its desire to apply debt to income restrictions, the Reserve Bank stated that this would lead to a reduction of 9,000 rental properties. Labour must have completed similar modelling to assess the effect on rental property supply and rental price increases and these need to be shared with voters.

Families who are renting and the parents of children who are flatting deserve to hear from Labour how they are likely to be impacted by Labour’s policies.


Scoop Editor's Note: This release was originally published with the incorrect attribution of BNZ, when it was from the NZ Property Investors’ Federation. Scoop apologises for the error.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Election Day Is Upon Us

On Saturday New Zealand will hold its 52nd election.

Despite differences over the county’s direction and how to get there, being part of a representative democracy is still a precious right.

The politicians and their supporters have had their say.

Many people have exercised their right to vote already and the rest will have their chance until the polls close on Saturday.

Then the results will begin to roll in…

Election Night Results

Advance Voting Statistics

General Election Information: Voters - Who, When And Where


From The Hood: The Campaign Strategist’s Lament

"This election is a chance to really work the record of what nine years of National-led government has done to improve the country for everyone. Or will do. Another three years, maybe six. Thirty-three years, tops. You don’t want to risk that, do you? More>>

PSA Report: National Gets An ‘F’ For Health Funding

"Seeing National’s record on health collected in one place is quite sobering - it’s clear that underfunding is having dire consequences on both patients and staff, who are having to do more than ever with less," says Glenn Barclay, PSA national secretary. More>>


Children With Disabilities: Education Crisis Unaddressed

In 2008 IHC lodged its complaint against the on-going failure of New Zealand Governments and the Ministry of Education to ensure that disabled children access a quality education on an equal basis to others in New Zealand schools. More>>

Gordon Campbell: Ten Reasons For Not Voting National

if anyone you know is thinking of voting National in Saturday’s election, there’s still time for an intervention. You owe it to your friends and relations to intercede. Because there’s plenty of evidence on National’s mediocre-to-awful track record over its nine years in power. We can’t afford another three years of drift. More>>


Suffrage Day: PSA National Secretaries Vote For Equal Pay

PSA national secretaries Erin Polaczuk and Glenn Barclay are advance voting for the 2017 election alongside their daughters, with equal pay and fairness in mind on the 124th anniversary of women’s suffrage in New Zealand. More>>


Charge Protests: Dairy Farms Use Same Amount Of Water As 60 Million People

Using Dairy NZ numbers, economist Peter Fraser and agricultural consultant Dr Alison Dewes calculate the water consumption of New Zealand dairy farms is equivalent to the residential use of 60 million people. More>>


Greenpeace: Labour, Greens Commit To Canterbury Democracy

Labour MP Megan Woods is promising to return Canterbury’s regional council, ECan, to a democratically elected council. It follows a mass day-long occupation of the ECan building by local water activists calling for the restoration of democracy and urgent action to save rivers. More>>




Featured InfoPages

Opening the Election
  • PublicAddress
  • Pundit
  • Kiwiblog
More RSS News Alerts