Build To Rent Bill passes first reading

The Overseas Investment (Build To Rent and Similar Rental Developments) Amendment Bill has passed its first reading this evening, Housing and Associate Finance Minister Chris Bishop says.

“We need to take every option available to increase the supply of housing in New Zealand, and Build to Rent is one of those options, so I’m very pleased to see the Bill pass its first reading this evening.

“The Bill amends the Overseas Investment Act to create a new streamlined consent pathway, allowing investors to purchase land with the intention of building a new Build to Rent development, or purchasing an existing one.  

“Encouraging investment in Build to Rent developments is one part of our programme of work to increase the supply of housing in New Zealand, making it easier for Kiwis to get into a warm and dry home. 

“Recently the Prime Minister and I opened New Zealand’s biggest Build To Rent development – so far, at least – in Mt Wellington. As we said at the time, Build to Rent developments offer an opportunity to increase the supply of secure, affordable and quality rental developments, placing downward pressure on rents. 

“Build to Rent developments consist of purpose-built, medium-to-large scale rental properties developments, often within walking distance to key transport links. The developments tend to be professionally managed, with good amenities, and offer residents a variety of lifestyle options. 

“Overseas these types of developments are becoming increasingly common. They often offer longer leases to tenants, making them a popular choice for renters. They are often financed and operated by institutional investors and developers such as pension funds. 

“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 Bill has now been referred to the Finance and Expenditure Committee.”