Call to limit LVR restrictions to where market hottest
Chair Paul Mersi said the success of the LVR restrictions in slowing house price and household credit growth was bad news for cities where house prices had not risen much.
Apart from Auckland and Christchurch, most of the country is experiencing minimal growth in house prices.
Mersi said: “For any town, city or region within New Zealand not ‘suffering’ from an over-heated property market or high household credit growth, a nationwide policy such as the LVR restriction si like having a bucket of cold water poured over you on a wintry day.”
He said there was no reason why LVR restrictions could not be applied regionally.
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