Government research confirms Labour’s war on landlords is driving rents to record levels, National’s Housing spokesperson Chris Bishop says.

A survey commissioned by the Ministry of Housing and Urban Development found that law changes and added costs imposed by Labour were cited by many landlords who had raised rents in 2022.

“Labour campaigned in 2020 on not introducing any taxes, but broke their promise immediately, imposing a new tax on tenants, through the removal of interest deductibility as a legitimate expense for rental property owners,” Mr Bishop said.

“The Labour Government was warned by everyone – from officials to landlords – that this tax would lead to higher rents and put pressure on the state house waiting list and emergency housing.

“Labour refused to listen. Now rents have gone up $150 a week, the state house waiting list is up by more than 20,000, and the Government spends $1 million per week housing people in motels.

“Labour’s Tenant Tax is hurting the very people it was intended to help.

“The Government has now done a massive U-turn and excluded big Build to Rent developments by corporate investors from this new tax.

“While we welcome this move, we’re campaigning for it to be extended to everyone – not just big corporate investors.

“Labour’s removal of interest deductibility was always unprincipled, as well as being a broken promise. A fundamental principle of tax law is to tax profit, not revenue.

“Mum and Dad landlords aren’t the enemy. They’re critical in addressing our housing supply problems.

“The next National Government will reverse Labour’s Tenant Tax, as well as the extension of the brightline test to 10 years.”

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