by The Landlord
Finance Minister Bill English told media he had seen the Reserve Bank’s comments about the prospect of new rules restricting lending to investors and understood it was consulting with banks about how this would work.
He said the plan would get political backing.
"We support the bank following its legislative mandate, paying attention to financial stability, taking the measures they believe are required," he said.
Labour's housing spokesman, Phil Twyford, said his party supported a crack-down on investors but the best way to help the Auckland housing market was to boost supply.
NZ Property Investors Federation executive officer Andrew King asked whether there was a case to target property investors.
“Rental property loans are actually less risky than many of the loans taken out against homes to fund businesses,” he said. “There are really two issues here - more clearly classifying residential loans and whether these different loans are more risky. We think more clearly classifying residential loans has merit, but rental property isn't any more risky than owner occupied property and is certainly a lot less risky than business loans.”
He said unnecessary risk weighting rules on rental properties would increase the cost of borrowing and make rents more expensive.
“Surely the Reserve Bank and Government should be supporting the efforts of our members to improve the accommodation shortfall and not making it difficult to provide homes for tenants.”
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