The National Party has a plan to overhaul the rental housing sector.
It's promising to drastically grow the Build-to-Rent market with changes to the Overseas Investment Office rules, as well as tax deductibility.
Will it be a game-changer or will it be another housing policy flop like Labour's KiwiBuild?
Speaking with Lloyd Burr on Thursday afternoon, National's Housing spokesperson Chris Bishop said it won't be a game changer but will definitely be a "useful contribution to our housing market".
"It gives greater options for people in the rental market," Bishop said.
"The reason why rents are so high and have risen so drastically in the last five years around the country on average is because we simply don't have enough supply…Supply and demand is what determines prices in the rental market," Bishop said.
"By adding more supply to the market, you're giving people greater options and greater choices around where they live - that puts the power in the hands of tenants rather than landlords.
"Over time this will put downward pressure on rents rather than upward pressure on rents."
Bishop said these Build-to-Rent developments are very common overseas and would allow Kiwis to live in the same place for longer.
"You've got much more security of tenure in these developments compared to flats where you're there for a year and then the landlord kicks you out and moves you on," Bishop said.
"[Someone's] first home, so to speak, might be renting for five years in a Build-to-Rent development while they build up equity and capital to move into a first home.
"Overseas, you have people who may live there for ten years and they have a ten-year rental agreement. Obviously, that can be broken by the tenant but they do have the surety that they can sign up for, say, five years or potentially even ten years in some cases."
Listen to the full interview between Chris Bishop and Lloyd Burr above.
You can also download the full interview on the Lloyd Burr Live podcast, and listen on the go.
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