Lending restrictions start to take effect on Auckland’s housing market

• It comes as property investors continue to increase their grip on the city’s market, where the average house price is this week expected to top $1 million.

In July, the Reserve Bank floated the idea of tighter lending restrictions for property investors and owner-occupiers in a bid to try and cool the market, particularly in Auckland.

The new rules were not expected to come into force until later this year, but the banks started applying them to new customers within days of them being mooted.

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There are already 90 $1 million suburbs in Auckland. Photo: RNZ / Claire Eastham-Farrelly