Monday, 25th July, 2016
Slapping lending restrictions on property investors does nothing to solve the housing stock shortage, and could make it worse, says Auckland Chamber head, Michael Barnett. It certainly won’t get more houses built.
Responding to the Reserve Bank’s proposed rules requiring investors to find deposits of 40%, Mr Barnett commented that property investors are small and medium businesses too.
“They employ, they contract to other small and medium businesses, they put their capital at risk.
“I am firmly of the view that there are better ways of dealing with them than to inhibit their activity.”
There must be a way to use investor stock to grow the pool of rentable homes rather than closing off this potential pool as part of the housing solution.
Mr Barnett called for a more innovative and comprehensive attack on Auckland’s housing supply shortage.
- We have investors for the property market – we should better manage them not deter them.
- There should be incentives for those saving for home ownership. This is an opportunity for the banking sector and Government.
- Immigration – it’s a part of the problem and has to be a part of the solution.
- Local government must become enablers not barriers.
A co-ordinated plan of attack would also deal to other constraints holding back housing supply including – making more land available, faster consenting, provision of key infrastructure and gearing up the construction sector, concluded Mr. Barnett.