New directive to LINZ issued
Associate Finance Ministers David Seymour and Chris Bishop (pictured above) have announced a welcoming stance towards overseas investment in New Zealand’s build-to-rent (BTR) housing sector.
By issuing a directive letter to Land Information New Zealand (LINZ), they aim to clarify and encourage international participation in addressing the country’s housing needs.
Build to rent: A solution to housing shortage
BTR developments, known for providing long-term rental housing, are seen as a viable solution to New Zealand's rental housing crisis.
“New Zealand has a shortage of quality rental housing, which is exacerbating housing affordability issues,” Bishop said, highlighting the government’s intention to attract overseas capital for large-scale BTR projects.
Streamlining overseas investment
The ministers announced plans to amend the Overseas Investment Act to simplify the process for foreign investors, a move aimed at expediting the contribution of international capital to the BTR sector.
Until the legislative changes are enacted, the directive advises LINZ to view overseas BTR investments as beneficial for New Zealand, especially under the “increased housing test.”
A stronger economy through housing
Seymour expressed optimism about the directive’s impact on housing and the broader economy.
“Increasing productive foreign investment is critical to growing the economy and improving the quality of life enjoyed by all New Zealanders,” he said in a media release.
The updated directive letter, effective last week, will guide LINZ in assessing BTR investment applications.
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