Housing supply at risk

Build-to-rent (BTR) is a major focus for the Property Council NZ (the council).

In a letter to Government ministers ahead of the council’s submission on the proposed changes to tax deductibility rules, it says the proposals will be a massive barrier to BTR developments occurring at scale and pace.

If the changes go head the council says emerging asset classes like BTR are at risk of being deemed unviable by domestic developers.

“Not only is there not enough certainty regarding how interest deductibility will work in the second hand market, but without a specific exemption investors will be reticent to invest,” says the letter.