Are rental prices on the way up?
Rental prices haven’t seen much change. The national median weekly rent has remained unchanged at $450 for the tenth month in a row. Only up 2.3% since September 2016.
This could be due to a number of reasons including the big election in October of this year, putting many landlords off upping their rents due to the uncertainty of what the future holds for a new government.
Rents also are pretty stagnant over winter as tenants don’t tend to move too much over winter and landlords look to review their portfolio in the New Year and summer period as students come back and tenants look for places so demand is high therefore increasing rental prices.
Now that the election is all finished and the Labour lead government takes a hold of the reins there are a number of things that can push rental prices up and potentially over the normal percentage increase.
- Foreigners can no longer buy so will need to rent
- 90 days’ notice to give to tenants to vacate a property, currently 42
- Reducing or stopping negative gearing, ring-fencing tax losses
- Rent increases only once per year instead of the current two
- Require all rentals to pass the Healthy Homes Bill
Check out the latest statistic below for your area. Gisborne and Northland have had some great gains, though Marlborough, West Coast and Canterbury have seen a drop