Bill to ban foreign investors

It would stop anyone who was not a citizen from buying any existing residential property.

The bill still must be drawn from the ballot before it will be given a reading in Parliament.

Phil Twyford said his member’s bill was a response to the current housing market situation. He said the loan-to-value restrictions had driven first-home buyers out of the market.

“The average house price in Auckland went up $677 a day in November. Census data released this week showed home ownership has dropped from 67 per cent to 65 per cent nationally since 2006.

“That’s why my Bill if passed will allow only New Zealand citizens and residents to buy any existing house, flat or apartment.Many other countries, including Australia, China, Singapore, the UK and Switzerland target overseas speculation in housing. New Zealand’s lack of regulation leaves the door wide open.”

He said IRD data showed that 11,000 investors had properties in New Zealand that they did not live in.

“An estimated 2,600 homes were bought last year by offshore property speculators that had no intention of living here. That’s a big chunk, given that just 4700 new homes were built in Auckland last year.”