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The Government, under the leadership of Housing Minister Chris Bishop, has unveiled a series of amendments to the Residential Tenancies Act aimed at revitalizing the rental property market. These changes are positioned as a response to feedback from landlords who felt alienated by previous policies and subsequently withdrew from the rental market, exacerbating housing issues for tenants.
According to Bishop, the prior administration’s approach led to adverse outcomes such as soaring rents, an expanding social housing waitlist, and a surge in families seeking emergency accommodation. To address these challenges, the current Government is proposing pragmatic adjustments to the Residential Tenancies Act to stimulate the supply of rental properties.
Key components of the proposed changes include the reintroduction of 90-day ‘no cause’ terminations for periodic tenancies, allowing landlords to end such tenancies without specifying a reason. Additionally, notice periods for landlords and tenants are being revised, providing more flexibility for property owners and occupants.
Bishop argues that these amendments will particularly benefit small-scale landlords, colloquially referred to as “mum and dad landlords,” facilitating their participation in the rental property market. Moreover, he asserts that these alterations will contribute to augmenting the housing supply and potentially alleviate pressure on rental prices.
The Government emphasizes that these adjustments are part of a broader strategy to address New Zealand’s housing crisis, aligning with efforts to stabilize the economy, enhance law enforcement, and improve public services. By leveraging various tools, including reinstating deductibility for mortgage interest on residential investment properties, the Government aims to encourage landlords to re-engage with the rental property market, thereby expanding the availability of rental housing.
Legislation to enact these changes is slated for introduction to Parliament in May, with implementation anticipated in early 2025.