Could UK benefit from New Zealand’s playbook?

Could UK benefit from New Zealand’s playbook?

0:02 AM, 30th November 2023, About 3 months ago 7

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Hello, a coalition agreement was signed in New Zealand this week following the recent election.

Here are two highlights:
1) Increase the speed at which mortgage interest deductibility is restored for rental properties with a 60% deduction in 2023/24, 80% in 2024/25, and 100% in 2025/26.

2) Encourage more landlords to enter the rental market by allowing 90-day notices to end a periodic tenancy, and return tenants’ notice to 21 days and landlords’ to 42 if the tenant wishes to move or the landlord wishes to sell.

On the first point, NZ followed Britain’s lead on mortgage interest deductibility. Both points were part of the agreement with the ACT party.
The British equivalent in my mind is the Reform Party.

What do Property118 readers think about this? Do you think if these measures were bought in the UK it would make any difference?



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11:05 AM, 30th November 2023, About 3 months ago

The biggest difference would be to allow us to invest our SIPPS in energy efficient residential property.

Peter G

13:13 PM, 30th November 2023, About 3 months ago

While both these policies would benefit UK Landlords and Tenants, a better solution to the housing crisis would be to build more houses. This would cause property prices to be cheaper as prices stabilise or reduce - helping both property investors and home owners, and lowering rents for tenants - creating higher levels of disposable income which could boost the economy. Win:win

Easy rider

16:01 PM, 30th November 2023, About 3 months ago

We should be allowed to hold 50% of any equity in a ‘Property ISA’ (£20k per year).


16:11 PM, 30th November 2023, About 3 months ago

Reply to the comment left by Peter G at 30/11/2023 - 13:13
100% agree we need more houses but with 600.000 people coming in this year we would struggle to get anywhere enough houses built, and this would take years and years to put right at this point in time,
We need to make the rental market more attractive and financially for long term investors that way we can invest back in to making homes better for tenants, And not demonising landlords all time (politicians and journalists and shelter, ) and seeing us as just cash cows well done New Zealand thats a start .


16:31 PM, 30th November 2023, About 3 months ago

Reply to the comment left by Firstpower at 30/11/2023 - 16:11New Zealand is in an earthquake zone and they build houses primarily out of wood. They have lots of wood, lots of space and they build quickly.
To make a significant difference to the UK property market requires investment. The only place there is enough cash to make a difference is in UK pensions.
We should be allowed to invest our SIPPs in energy efficient residential property. And all the UK governments, regardless of their political affiliations, should stop trying to con the electorate that they can fix the problem any other way; they have not got the money to do it and their failure to face that fact actually damages the vulnerable and the homeless.


21:29 PM, 1st December 2023, About 3 months ago

Restoring Sec 24 mortgage interest would at least bring back many landlords. Just beware that in Scotland with rents capped at 3% when you try to get your equity out to purchase more portfolio you will find there is little equity. I get 700 rent in an area where the going rate is 900. I cannot get the tenant out and so I was only permitted under 3000 equity but the mortgage advisor said if I was using the going rate I would get 14,000. So I am not permitted my money due to a Policy of the Scottish Government.


16:02 PM, 2nd December 2023, About 3 months ago

Reply to the comment left by Jayemgee at 01/12/2023 - 21:29
That's part of the problem. The Scottish government made it unattractive to invest in buy to let (and I suspect made short-term-lets more attractive than long term lets) thereby discouraging investment in residential property. The only way that you can increase the rent is with new tenants so new tenants will inevitably experience a disproportionate increase in rent.

All UK governments need to learn from that experience. The UK governments need to encourage investment in high quality energy efficient housing, not penalise a socially useful activity because will only ever hurt tenants. If I could invest my SIPP now in a couple of high energy efficiency Band A two bed flats or 2 bed houses I'd do it now. But I'm not allowed to.

The experience that tenants are having now is the consequence of labour, conservative and SNP policies. Being able to deduct interest payments again might dissuade more landlords from exiting and help to increase choice, but the only way they can fix the problem is with money from the pensions industry.

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