“It’s not just homeowners who are suffering the consequences of Labour’s mismanagement, today’s rental price index shows that everyone is paying more to have a roof over their heads,” says ACT’s Deputy Leader and Housing spokesperson Brooke van Velden.

“Stats NZ states that rental prices have increased by 2.7 per cent in the month from December 2022 to January 2023, this is the biggest January increase since 2011. Even as more people have left the country and house prices have dropped in the past year rents have increased 3.8 per cent annually.

“Trademe recently revealed that only one region in New Zealand now has a median rent below $500. Kiwis are paying more in every aspect of their lives and rent is no exception.

“Labour was elected to fix housing because National failed. Now Labour has failed as well. ACT is the only party prepared to address the crux of the problem.

“Putting more costs on homeowners inevitably leads to more costs on tenants. There has been steadily increasing rents over the course of Labour’s time in office due to increasing regulation, now rising interest rates and living costs mean that homeowners need to increase rents to recover costs.

“Limiting interest deductibility for landlords and meeting healthy homes requirements, including installing larger than necessary heat pumps, means there has been a big jump in compliance costs landlords face and there will be further increases as the percentage of interest that can be deducted is phased out.

“ACT would reverse the interest deductibility changes, re-instate the 90-day no-cause termination as landlords and neighbours shouldn’t need to put up with harassment and it means landlords are more likely to take a chance on a tenant, and return the right to charge a letting fee to ensure the various costs of putting a house on the rental market aren’t added on to rents.

“The long-term solution for rents is ensuring enough houses are being built, which isn’t happening because there is an infrastructure shortage.

“ACT has proposed local councils receive a payment equivalent to 50 per cent of the GST for every new dwelling constructed in its territory. This provides an incentive for councils to enable building and a means of covering infrastructure costs.

“ACT believes in better, longer-lasting solutions. As a country we deserve better when it comes to housing to ensure we can live our best and most fulfilling lives.”

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