New Zealand’s housing problems are likely to become the "No1" election issue this year, according to the Property Institute, with the possibility of pre-election carrots for hard-hit first-home buyers. Property Institute of New Zealand chief executive Ashley Church is predicting house price inflation, while still in double digits, would fall away from the highs of the past couple of years. "The continuing gap between demand and supply means that further price inflation is inevitable for the foreseeable future," Mr Church said. "The Reserve Bank talked a lot about debt-to-income restrictions on mortgage lending during the latter half of 2016, but is unlikely to act on them this year," he said. "While the Reserve Bank is independent, it’s not completely blind to the politics of such a move," he said.

Source: Otago Daily Times January 15, 2017 17:04 UTC