26 Sep 2023
The next National Government will unlock investment in purpose built ‘Build-to-Rent’ rental housing in New Zealand, National’s Housing spokesperson Chris Bishop says.
Build-to-Rent developments typically consist of multi-unit residential developments within walking distance of key transport links. The developments are professionally managed, with great amenities and offer residents a variety of lifestyle options as well as unique security of tenure to tenants.
“Build-to-Rent developments are an important part of housing markets in countries we like to compare ourselves to, but remain rare in New Zealand,” says Mr Bishop.
“If National is elected to govern this year, we will move quickly to make two legislative changes to help make Build-to-Rent developments get off the ground in this country.
“We will do this by amending the Overseas Investment Act to give greater certainty for institutional investors to invest in New Zealand’s Build-to-Rent market. We need both domestic and international capital to help us house Kiwis.
“It is nuts that retirement homes, rest homes and student accommodation have an easier ride through the Overseas Investment Act than Build-to-Rent developments. We will make sure they are treated the same.
“National will also change the Income Tax Act to ensure that Build-to-Rent developments are eligible for depreciation deductions like other commercial buildings.
“Labour has talked a big game on Build-to-Rent for years but has failed to take the necessary action to get the sector going. Labour’s humiliating U-turn last year reintroducing interest deductibility for new Build-to-Rent developments was a good step forward, but further changes are required and the next National Government will get them done.”