Build to Rent housing is a new concept in New Zealand, but one that has already seen significant growth overseas.
"For instance, in the United Kingdom, Build to Rent has been the fastest-growing source of new housing for nearly a decade, with annual increases in supply of over 50%."
With New Zealand in the grips of a housing crisis and in urgent need of warm, dry, healthy new rental homes, the property industry began work to kick-start New Zealand’s Build to Rent sector and transform the experience of renting in New Zealand. New Zealand’s regulatory and legal framework had not been designed with Build to Rent in mind, and urgent change was needed to get Kiwis into Build to Rent homes at scale.
Led by Property Council New Zealand, the property industry worked closely with the New Zealand Government to start to unlock the Build to Rent sector, meeting together for a roundtable summit in Parliament March 2021 and forming a Build to Rent Ministerial reference group led by the Ministry of Housing and Urban Development (MHUD).
Property Council New Zealand also launched numerous public awareness campaigns such as research showing the potential for 25,000 Build to Rent homes in 10 years, and the ‘Missed Opportunities Counter’.
"In August 2022, the government introduced legislation that took the first step towards unlocking Build to Rent in New Zealand, with the introduction of a Build to Rent asset class and the restoration of interest deductibility for that asset class. This bill passed into law in March of 2023."
Housing Minister at the time, Hon Dr Woods, publicly stated at Property Council New Zealand’s March 2023 conference that their Build to Rent taskforce had been “instrumental with their advice to the Government”.
Building on legislative progress made under the previous government, in March 2024 New Zealand’s new Minister for Housing, Hon. Chris Bishop, reflecting the government’s commitment in their first 100 days of office, announced Cabinet’s intention to introduce legislation to amend the Overseas Investment Act. This change made it easier for overseas investment in Build to Rent and was followed by a Ministerial directive to provide certainty that New Zealand is open to foreign investment in Build to Rent.
In June 2024, Minister Bishop went on to introduce a bill to Parliament, which passed in February 2025 with significant cross-partisan support. Amendments to the Overseas Investment Act now create a new test, the ‘Large Rental Development Outcome Test’ which specifically deals with existing BTR assets and the issue of liquidity.
Property Council New Zealand look forward to working with Minister Hon. Bishop and officials on further changes to fully unlock Build to Rent’s potential, namely clarification on GST rules, gaining the ability for depreciation of assets that other commercial and industrial buildings currently can, and ensuring the Residential Tenancies Act is fit-for-purpose for this unique type of rental accommodation.
Property Council New Zealand research shows that conservatively, with the right legislative levers, it’s developer members could build 25,000 Build to Rent homes for Kiwis within 10 years."