REINZ Welcomes National’s Announcement To Repeal 90-day No Cause Evictions
The Real Estate Institute of New Zealand (REINZ) has today welcomed National’s housing policy announcement that if it is elected it will repeal the 90-day no cause eviction notice as recently introduced by the changes to the Residential Tenancies Amendment Act.
Additionally, REINZ is supportive of the announcement to allow social housing tenants to buy their homes through a rent-to-own or shared equity scheme and to remove ring fencing of rental losses for tax purposes.
Bindi Norwell, Chief Executive at REINZ says: “We have been very vocal over the last 12-18 months around our views on the changes to end the 90-day no cause notice and our recommendations to the current government along with a number of other organisations was dismissed when bringing in the changes to the Residential Tenancies Amendment Act.
“Therefore, we are very supportive of National’s proposal around this aspect of their housing policy today – particularly as we have already seen a number of landlords start exiting the market as a result of the changes to the Act.
“In terms of social housing tenants being able to buy their own state house, this is a great initiative and will hopefully allow a number of people to be able to get a foot on the property ladder for the first time,” continues Norwell.
“Additionally, the proposals to removal ring fencing of rental losses for tax purposes is to be welcomed. REINZ has always advocated that restricting the use of rental losses for investors could negatively influence the rental market, either by investment property owners passing on the cost of the reduced benefits to renters through increased rental prices or making rental ownership a less appealing investment choice. We have seen tangible examples of landlords leaving the market as a result of these changes which has led to increasing pressure on the rental market and has been a factor in driving up rental prices,” she concludes.