INDEPENDENT NEWS

Property Institute says LVR loosening not fast enough

Published: Wed 29 Nov 2017 12:45 PM
29 November 2017
Property Institute says LVR loosening not fast enough
Property Institute of New Zealand Chief Executive Ashley Church has welcomed news that the Reserve Bank has decided to loosen its Loan-to-value lending rules but says the speed at which the loosening is proposed isn’t nearly fast enough to address the problems that the rules have created.
“While it’s good to see that common sense has finally prevailed – the speed at which the Reserve Bank is proposing to relax the rules means the move will have very little effect.
Mr Church says that the LVR restrictions have locked a generation of first home buyers out of the property market and now appear to be the leading cause of a dramatic drop in the number of homes available for rental.
“These rules didn’t just impact on first home buyers – they also locked investors out of the market – and the chickens let loose through that particular action are now coming home to roost”.
Yesterday, the Property Institute of New Zealand released figures warning of a ‘perfect storm’ in rental market conditions and suggested that this will cause big increases in rents in many parts of the country, - primarily as a result of a shortage in the supply of rental housing caused by the imposition of the LVRs on property investors.
“This was all avoidable. The Property Institute has repeatedly called for the removal of the LVRs and has been drawing attention to the issues created by them for almost two years – back when other organisations were basking in the glow of the property boom, oblivious to the market disaster that was looming”.
Ends

Next in Business, Science, and Tech

RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds
By: The Reserve Bank of New Zealand
Monetary Policy With Very Low Interest Rates
By: The Reserve Bank of New Zealand
More Snow On Glaciers But No Good News, Say Scientists
By: NIWA
Elevate NZ Venture Fund To Lift Productivity
By: New Zealand Government
New Legislation To Boost Organics
By: New Zealand Government
Misinformation Circulating On Biodiversity Policy
By: Forest And Bird
Govt Backs RBNZ Move To Support Economy With Lower Interest Rates
By: New Zealand Government
Reserve Bank announces further measures to support economy
By: RNZ
Holding Off The COVID-19 Recession – Expert Reaction
By: Science Media Centre
Banking Sector Prepared For Responding To COVID-19
By: The Reserve Bank of New Zealand
Reserve Bank’s ‘unconventional Tools’ Are Conventional Elsewhere
By: Social Credit
RBNZ Survey: Experts Say An Out-of-cycle Rate Cut May Cause Panic
By: Finder
Next Steps Of Govt And Business COVID-19 Response
By: New Zealand Government
NZX falls following US interest rate cut
By: RNZ
Coronavirus and the economy: Responding to Covid-19 with precision
By: RNZ
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media