Labour has set the cat among the property speculator pigeons, and they don’t like it at all. Good coverage of the announcement here – Little gets personal with housing policy
Andrew Little rallied his troops with an aggressive speech full of personal touches and a new housing policy at Labour’s last party congress before the election, Bernard Hickey reports.
If there was any doubt that Labour would focus on housing as its main point of attack in the election campaign, it was removed in leader Andrew Little’s final address to the Labour Party’s annual congress in Wellington on Sunday.
He focused his speech completely on housing and roused the packed audience at Te Papa to its feet several times with his focus on Labour’s housing policy, and the party’s early history of building state houses.
The news in the speech was Little’s announcement that a Labour-Led government would phase out over five years the ability of rental property investors to offset their property losses against their personal income. He cited Inland Revenue Department figures showing this practice of negative gearing reduced potential tax revenues by $150 million a year and the policy of phasing out negative gearing would raise an extra $1.2 billion over a decade. Labour would use that extra revenue to fund a grant of up to $2,000 per dwelling for insulation, double glazing and heating upgrades.
You know it’s going to be an effective policy because of the panic of those who benefit from the current tax structure – Property Council ‘cynical electioneering’ (RNZ Audio)
Property Council says Labour’s property tax proposal is cynical electioneering and could make the housing crisis a lot worse.
This old classic of course – Landlords threaten rent rise for Labour reforms
Landlords are threatening to push up rents in reaction to Labour’s new rental sector tax policy change.
Andrew King, NZ Property Investors Federation executive officer, said there was no doubt rents would rise nationally if policy announced by Labour leader Andrew Little was introduced.
Vested interests should have coordinated better with the Nats – PM fires back at Labour’s property flip tax loophole claims, saying it’s already sorted
Prime Minister Bill English says Andrew Little’s promise to crack down on property speculators is nothing new, and housing construction is on track.
Get your stories straight guys! (Yeah housing on track – Auckland under-building drastic: barely half demand being met.)
It’s a good policy – Close negative gearing tax loophole, spend money on insulation – Labour. And the panic of the property speculators shows that it’s going to be an effective policy.
Landlords warned of rent hikes after the depreciation changes. Didn't make a difference. Rents due to demand/supply https://t.co/yPghzteNmF
— Bernard Hickey (@bernardchickey) May 14, 2017