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

 

More Regulation, Less Rentals?

More Regulation, Less Rentals?

Labour has announced policy that if they were to govern they would ban letting fees to tenants amongst other initiatives to “fix” the residential rental market. It defies logic why politicians continue to propose measures that are likely to deter investors from providing much needed capacity in residential rental accommodation. In the last year alone we have seen over 10% of our landlords sell their rental properties as talk of more regulation, and taxes make headlines and returns in the sector diminish.

Banning letting fees is a step back to an overregulated economy which flies in the face of the merits observed in free market policy and is yet another beat up on landlords. If there were more rental properties available a less regulated market is far better suited to determine, at any point in time, who pays letting fees and address other issues which are ultimately driven by a lack of choice due to overall supply shortfalls in housing stock itself a symptom of long-term housing policy missteps.

There is a host of costs associated with providing a professional letting service to the standard required by legislation and insurance obligations alike. Management companies have no capacity to absorb these costs and investors will naturally look to recover any additional costs they bear through increasing rents. This is how businesses work.

We would be better placed to start talking about what incentives or policy initiatives can encourage investors before even more exit as interest rates start to climb and other costs become more real. The sector is already awash with compliance measures and there are more than adequate avenues to ensure an equitable rental market via the myriad of laws and regulations coupled with the powers invested in the Tenancy Tribunal.

The private property investor’s contribution to housing is underappreciated and their ability to invest into more homes undervalued. What we need is for politicians to recognise that private investors are integral to alleviating the shortage of quality rental housing. The current approach favours restrictive measures and increasing regulation rather than policies that encourage investors to invest in supplying more housing in an equitable and profitable environment.

Perhaps it is time to start talking about having a quality tenants register and certificate. If policy focussed on creating good tenants with the likes of a tenants Warrant of Fitness the cost to identifying good tenants would reduce, which in turn would lower the cost of re-letting a property.


ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Whakaari / White Island Eruption: Body recovery operation

The NZ Defence Force recovered the bodies of six people who tragically died in Monday’s eruption on Whakaari/White Island and will support efforts to recover the bodies of two others in the hope there is resolution for those families. .. More>>

 
 

Gordon Campbell: On Welfare Vs Infrastructure Spending

If New Zealand has a pressing need to stimulate its flagging economy, it seems very weird that the government is choosing a $12 billion package of infrastructure spending – mainly on road and rail – that by definition, will take a very long time to deliver their stimulatory benefits ... More>>

New Reports: "Immediate Commitment To Doing Justice Differently"

Justice Minister Andrew Little released two reports today, Turuki! Turuki! from Te Uepū Hāpai I te Ora, and Te Tangi o te Manawanui: Recommendations for Reform from the Chief Victims Advisor. Both recommend a fresh approach to the way criminal justice has been approached... More>>

ALSO:

"Heart-Breaking And Confronting": Surgical Mesh Restorative Justice Report

Minister Genter: “People have talked about losing the life they had enjoyed before surgical mesh harmed them – the loss of a steady job, the ability to exercise, a loving relationship in some cases. Others described the chronic pain they experienced..." More>>

ALSO:

Law Foundation: Government Decryption Powers Must Respect Privacy

The power of government to order users and companies to decrypt encrypted data and devices needs stronger privacy protections and additional safeguards, according to a study published by researchers at the University of Waikato. More>>

Latest 'Discussion Doc': National On Healthcare

National has today released our eighth Discussion Document which focusses on health and outlines a range of policies which will enable more Kiwis to access high-quality healthcare, Leader of the Opposition Simon Bridges says. More>>

ALSO:

Select Committee Report: Combatting Foreign Election Interference

MPs have finally delivered their recommendations to combat foreign interference in elections in a long awaited and much delayed report. More>>

Mosque Attacks: Names Of Arresting Officers Released

Police are now in the position to name the two officers involved in the arrest of the alleged gunman responsible for the attacks on the Al Noor and Linwood Mosques on March 15. More>>

Big, Bold, Permanent Change Needed: Children's Commissioner On 2019 Child Poverty Monitor

“I want to see family incomes dramatically raised by increasing benefits and making the minimum wage a living wage. And the Government needs to move much faster at increasing the supply of social housing..." More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels