Election Special Part 1: Housing Policies of the National and Labour Parties
On the 23rd of September this year New Zealand’s election will take place. Here’s what the main parties, Labour and National, key policies are on Housing:
- Labour would get rid of negative gearing. Negative gearing is the ability to transfer losses from a rental property and offset it against personal income resulting in paying lower taxes in your own name. Then Labour Leader Andrew Little claims that investors have avoided paying $150 million in taxes last year by claiming losses from negative gearing.
- Bankroll its ‘Kiwibuild’ program which is to build 100,000 affordable homes over 10 years for 1st home buyers
- Labour would also bolster the stock of state houses by 1000 per year until demand is met.
- Lift Auckland’s urban growth boundary to combat land bankers and free up supply of land for housing
- Ban non-resident foreign buyers
- Increase bright line test from 2 years t
o 5 years.
- National-led Government has announced its Crown Building Project which is their plan to build 34,000 new homes. 13,400 will be social housing and the remainder will be market and affordable houses (which have conditions about who buys them and the length time they hold them).
- A $1 billion Housing Infrastructure Fund to accelerate new housing in the high-demand areas
- The new fund will focus squarely on financing infrastructure like roads and water needed to support new housing.
- Reform the RMA to speed up the process of development
- Implement Auckland’s Unitary Plan by creating more Special Housing Areas (known for their relaxed density controls and fast-tracked council approvals)
- Develop underutilised Crown land for housing
If you’d like to discuss more on how these policies can impact the Auckland rental market, please feel free to contact us at Walker Weir Property ManagementAugust 19th, 2017