Northland Property Investors' Association


News & Updates

Recent updates


Possible lifting of the LVR restrictions

“It is a welcome move that the Reserve Bank of New Zealand is beginning seven days of consultation regarding the possibility of lifting the loan to value ratio restrictions (LVR)” says Sharon Cullwick, Executive Officer of the NZ Property Investors’ Federation (NZPIF)

The LVR restrictions have been placed on property purchases since 2013. This is one of the macro-prudential tools that the Reserve Bank has available in order to respond to cyclical pressures.

“This move will allow first home buyers and some investors to take advantage of the reduced restrictions and help existing customers who are facing financial pressures due to Covid 19”, says Cullwick.

However for many property investors, the removal of LVR restrictions is gravely overshadowed by the proposed Residential Tenancies Amendment Bill which is going through the Select Committee oral submissions stage despite the Covid 19 lockdown. If passed into legislation, it is believed that many landlords will leave the industry. For example a survey of NZPIF members in November 2019 on the effects the proposed changes to the Residential Tenancies Act found that 20% of members would leave the industry if these changes took place. This will mean fewer properties available for rent and a possible increase in rental prices

Cullwick says that even though the removal of the LVR restrictions would help stimulate the economy, the changes proposed in the RTA Amendment Bill would completely counteract any benefit. She felt that property investors would probably not be taking up the offer.



The New Zealand Property Investors’ Federation represents 7000 property owners and is responsible for educating and supporting landlords to ensure New Zealanders have access to high quality rental properties.

For further information please contact

Sharon Cullwick

NZPIF Executive Officer


Tags: mediarelease

Sponsors & Partners

    Services That A Rental Management Company Should Provide | Rental Experts -  Northland's Experts in Property Management   Kris Pedersen Mortgages