“The experts are in agreement: Labour’s proposed change to interest deductibility rules is a renter’s tax,” says ACT’s Housing Spokesperson Brooke van Velden.
“A majority of economists, academics and property experts believe the impacts of the Government’s housing changes will be borne by tenants.
“More than a dozen experts surveyed expect rents to increase due to higher tax bills faced by residential property investors.
“Let’s be clear: This is a renter’s tax.
“All of the stories ACT is hearing at act.org.nz/housingstories confirm that.
“Landlords are telling us ‘I’ve kept rents below the market rate for several years, but these changes will force me to hike them, and I don’t know if my tenants will be able to afford it.’
“This divisive policy targets residential property investors, but it will actually hurt some of the most vulnerable people in New Zealand
“Labour just doesn’t get it. We can’t tax and regulate our way out of a housing crisis. We need to make it easier for the private sector to build houses.
“The Government’s Healthy Homes rules, foreign buyer ban, KiwiBuild, and myriad other policies have all failed for the simple reason that they misdiagnose the problem.
“ACT’s answer is for the next generation to build like the Boomers.
“ACT would radically overhaul infrastructure funding, through a 30-year partnerships with central government for each region.
“We’d then replace the Resource Management Act with legislation designed to facilitate home building, and get councils out of the building consent business.
“Industry insiders tell me that ACT’s plan is the only one that would actually work to get homes built, but the Government is focusing on scapegoating a particular group of New Zealanders.
“Rather than dividing, the Government should be uniting New Zealanders behind good ideas.”