Landlords are here to stay
Landlords welcome longer-term tenancies but remain cautious about other proposed tenancy law changes, results of the
latest Auckland Property Investors’ Association member survey found.
The survey polled over 500 active Auckland landlords about the extent to which they expect to impacted by various
proposals designed to affect the residential tenancy market. Across the board, landlords respond favourably towards the
relaxation of LVR restrictions, better security of tenure through longer-term tenancies, and the Healthy Homes Guarantee
Act. The survey also found that landlords are most concerned about the prospects of a capital gains tax, debt to income
restriction, and the removal of the 42-day notice to terminate.
"While the results are hardly surprising at first glance," says Association President Andrew Bruce, "what is
interesting, and in fact, encouraging to note is that on a 1-10 favourability scale, none of the issues polled is so
abhorrent to landlords as to cause them to dump their portfolios." The survey shows long-term investors remain
cautiously optimistic and steadfast in their approach to investing in this changing market. “These results strengthen
our belief that property is not an overnight rags-to-riches story. Most of our members have taken a long-term approach
to their investments which includes built-in contingencies and mechanisms to absorb additional costs brought on by
adverse policies. It is the price of doing business,” says Mr Bruce.
Additionally, the Association is encouraged by its members' response to the Healthy Homes Guarantee Act which is set to
raise minimum standards for rental properties. Out of the ten issues polled, the HHGA ranks the third most favourable.
"Our members are acutely aware that the HHGA goes hand in hand with the security of tenure. As landlords, we understand
that it is in everyone's interest to provide a healthy and safe home for our tenants," says Mr Bruce. "What we want to
be careful of, at this stage, is to ensure that the HHGA strikes the right balance between maximising tenants' health
without placing landlords under an undue burden that could ultimately distort the rental market with lesser rental
stocks and increased rents." It is early days for the HHGA. Details of the new standards are yet to be decided. The
Auckland Property Investors' Association plans to continue lobbying for a common sense approach that maximises the
potential the HHGA has to improve residential tenancy across the board for New Zealanders.
The Auckland Property Investors' Association is a non-profit group supporting and representing Auckland landlords. Its
latest membership survey polled over 500 of its members on the following issues (ranked in order of favourability):
Relaxation of current LVR restriction
Longer fixed-term tenancies
Healthy Homes Guarantee Act
Extension of Bright Line Test
Limiting rent increases to once a year
Removal of negative gearing
Ring-fencing tax losses
Removal of 42-day notice to terminate
Debt-to-income restriction
Capital gains tax
END