tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Rent rises could contribute to more inflation

A new source of inflationary pressure could be on its way.

Friday, September 23rd 2022, 10:51AM

by Sally Lindsay

More than 70% of landlords responding to the latest Tony Alexander/Crockers Investor Insight survey say they will raise rents in the next six months. This is up from 65% last month.

Landlords are targeting an average rent increase of just over 5%. Proposed rent increases have dropped by about 1% since March when landlords were looking at a rise of more than 6%.

Independent economist Tony Alexander says the drop in proposed rent increases is not surprising considering many landlords have caught up after the pandemic rent freeze and renters’ incomes are stretched by the cost of living surge.

“Rent rises ultimately reflect market conditions and those conditions for many families are fraught.”

He says if landlords again show next month they are considering rising rents by a bigger percentage, then this could indicate a new source of inflationary pressure in the economy is emerging. “However, anecdotal reports strongly suggest slowing rental growth.”

Landlords are still saying it is hard to find good tenants. The ease with which good people can be found switched to negative in July and now stands at 9%.

The survey also shows a lift in the number of existing property investors saying they are considering buying another property in the coming year. These numbers rose 29% from just under 22% in August. The rise is in line with data from other surveys showing more investors are considering expanding their portfolios – perhaps following on from evidence of first home buyers re-entering the market to some degree.

Alexander says this month 10% of respondents indicated property buying intentions - the strongest result on record.

“Because it follows an unusual negative result in August the jump should be treated with caution. It does not signal a big movement of investors back into portfolio expansion given the many negative factors in play. These include tax changes, low prospects for interest rate cuts in the coming year, and difficulties accessing finance.” Despite the negative factors there is no upward swing in the number of landlords who intend selling.

For those investors looking at buying a new property the preferred option is a townhouse followed by a standalone house. The surge in demand for a new apartment over July and August has not been sustained.

In the latest survey there has been a noticeable lift in interest in buying a townhouse and a fall in demand for a standalone house.

For those investors looking at buying an existing property the preference for a standalone house remains strong.

The downward trend in the number of investors who will do a development themselves has re-established itself.

Reports from developers, builders, and buyers indicate problems for many newer operators including difficulties sourcing materials and staff and making projects profitable amidst soaring costs. Anecdotal reports suggest a noticeable decline in new projects over the coming one to three years.

Tags: rents

« One way traffic for REINZ housing reportListings lift more than 70% »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com