Hamilton renters get warning

Lodge Real Estate’s managing director, Jeremy O’Rourke, said:  "For most of 2013, we’ve been saying the interest from the investor market in Hamilton continues to be strong, particularly in the $320,000 or less price bracket. Historically, what happens in a strong investor market is that they begin competing with renters who are looking at their first home purchase.”

He said that would push prices up and keep people in rentals for longer, causing more demand for rental property, increasing rents.

"It’s highly likely in the next six months we’ll start to see this phenomenon emerging within the Hamilton market.”

He said it was likely the Reserve Bank’s intervention in introducing loan-to-value speed limits would work against renters looking to buy and make the squeeze even tighter.