Govt reforms will drive up rents say officials

Stuff reports:

Housing Minister Phil Twyford’s package of tenancy law reforms would likely drive up rents by causing some landlords to get out of the market, officials have told him.

Officials said while most of the tenancy law overhaul and other changes to the rental market considered by the Government would not have much of an effect on their own, their cumulative weight could lead some landlords to sell their properties to owner-occupiers.

Because owner-occupiers typically have less people in a house than renters, this could lead to a further shortage in rental properties – and higher rents.

This is not unexpected. The Government really doesn’t seem to understand that increasing costs leads to higher prices.