The coalition government has announced that it will introduce legislation to make it easier for overseas investors to invest in Build to Rent developments in New Zealand, according to Housing and Associate Finance Minister Chris Bishop.
The Cabinet has agreed to make changes to the Overseas Investment Act 2005 to better support Build to Rent housing developments, fulfilling another element of the Coalition government’s 100 Day Plan.
Chris made a statement on the changes, and what it means for the new and upcoming Build to Rent sector in the country.
“Build to Rent housing offers an opportunity to increase the supply of secure, affordable, and quality rental developments in New Zealand, placing downward pressure on rents. The sector is currently small in New Zealand with only 22 registered developments, but there is great potential for growth. New Zealand’s complex overseas investment laws are holding the Build to Rent sector back.
“Cabinet has therefore agreed that the Overseas Investment Act will be amended to create a new streamlined consent pathway that would allow investors to purchase land with the intention of building a new Build to Rent development or purchasing an existing one. Cabinet has also agreed that a ministerial directive letter will be issued under the Act to provide immediate certainty that New Zealand is open to foreign investment in Build to Rent developments.
“The coalition government remains committed to the ban on overseas investment into existing residential housing and land in New Zealand (unless the investor is eligible for a consent). The changes we are announcing today are all about adding to supply of housing and making it easier for Kiwis to get into a warm and dry home. There is no silver bullet to solving New Zealand’s housing crisis, so we need to take every option available to us to get more homes built.”
Chris Bishop, Housing and Associate Finance Minister, New Zealand Government
