Labour and National have joined forces behind a radical new housing policy, the Housing Supply Bill, which they say will help address the housing crisis by allowing as many as 105,500 new homes to be built in less than a decade.
National MP Nicola Willis hopes lightning will strike twice, having again written to Housing Minister Megan Woods calling on her to adopt a National housing policy - this time in the area of build-to-rent.
Build-to-rent means what it says in the tin: developers building dwellings for the purpose of long-term rentals, rather than to be sold to owner-occupiers.
Willis has written a Member's Bill to incentivise investment in build-to-rent, and has called on Woods and the Government to back it.
"This legislation enables investment in purpose-built rental properties, which provide greater security of tenure, professional landlord services and the experience of living in newly built accommodation," Willis said.
The bill would give build-to-rent homes an exemption under Overseas Investment Act rules, allowing foreign capital to be used to invest in build-to-rent accommodation.
It would also allow build-to-rent properties to be treated as a commercial building for tax purposes.
Willis could have luck on her side. The Government this week joined forces with National to push forward changes that would make it easier to develop land in cities - which National had been urging it to do.
Woods has also expressed concern with the way overseas investment rules applied to build-to-rent housing in the past, noting that when Labour tightened overseas investment rules in its first term, with its "foreign buyers ban" it deliberately exempted certain large developments to encourage this sort of investment.
One of its many exceptions was for large-scale new developments, consisting of 20 units in a building of more than one storey.
In March, Woods went so far as reminding foreign investors that New Zealand was still keen on their capital.
"I've signalled a range of investments that I think are missing from the New Zealand market," Woods said.
"Build-to-rent for affordable long-term rentals is something that is conspicuous by its absence in the New Zealand market, that you see in most advanced economies," she said.
Labour and National put aside their grievances on housing this week. Photo / Mark Michell
Woods said one of the issues was "making it clear under the Overseas Investment Act what the options are".
"This is actually permissible under the Act but there is a perception that it isn't because it is investment," she said.
In September, Woods said the Government had sought further policy advice on build-to-rent.
Woods said she had asked the Ministry of Housing and Urban Development for advice on "issues" to do with build-to-rent.
"These issues include constraints within the Residential Tenancies Act and the Overseas Investment Act and concerns relating to the recently announced changes to interest limitation settings," Woods said.
David McConnell, managing director of developer McConnell Property, said large international funds were looking to invest in products that offered stable, safe returns like build-to-rent.
