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Government Has Rejected Rent Cap

The idea of rent caps has been commented on across the media, but now landlords can sigh with relief with the latest government update on Thursday 29th April showing the government has already considered and appears rejected the possibility of rent caps.

Rents across Wellington are at an all-time high. Over the past 5 years across the Wellington region average weekly rents have increased by 53%, from $411 to over $600. With the supply of rental properties remaining too low to satisfy tenant demand, it's unlikely rents will stabilise or lower anytime soon.

This is even less likely when landlord costs increase, as landlords are more inclined to increase rent to help ends meet. A concern that the government considered before releasing their recent housing policy removing interest deductions for residential rental properties acquired on or after 27 March 2021, and a phase out of interest deductions over four years for already acquired properties.

On Thursday, official government documents released showed the government considered temporarily capping rents to try reduce any potential negative consequences of the policy, but international data showed landlords would simply increase rents as soon as the period of rent control ends. Though it should be noted that the market rate will always be a regulator on rents.

What's interesting, is that many investors looking at the numbers are finding their investment properties are still more profitable now than they were in 2019, thanks to low interest rates and significantly higher rents, plus of course capital growth is strong, showing that despite the recent government changes property is still a reliable and profitable investment for most.

If you're considering Property Management get in touch with us today. Locally owned and managed, we offer residential property management services across the entire Wellington & Hutt Valley region.

We take care of investments, offering peace of mind and a personal service to investors and tenants alike. Our solutions are backed by industry-leading technology and proven systems that promote both excellent property care and strong investment returns. Taking on all aspects of the landlord’s role, we guide our clients with professional, tailored advice using our extensive experience and insight in the rental market that can only be built over time.

If you would like to chat about the possibility of working together, or to receive a no-obligation, FREE Rental Appraisal get in touch with our team today.

Quinovic Johnsonville | Wellingotn

Call Jordan Atkinson - 027 297 0873

Quinovic Hutt Valley | Wellington

Call Helen Vance - 027 487 8103

Quinovic Kent Terrace | Wellington

Call Jordan Atkinson - 027 297 0873

Quinovic Wellington Property Managers


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