Little: Reserve Bank doing Govt's job on property

  • 24/08/2015
From November, the bank will require higher loan-to-value ratio limits for rental properties in Auckland (file)
From November, the bank will require higher loan-to-value ratio limits for rental properties in Auckland (file)

The Reserve Bank's set to outline its latest thoughts about the housing market today, and Labour's expecting to see growing frustration.

Deputy governor Grant Spencer is speaking at a private event.

From November, the bank will require higher loan-to-value ratio limits for rental properties in Auckland, and Labour leader Andrew Little says that's a sign.

"We now see the Reserve Bank having to get a bit more sophisticated about what they do – doing everything it can with the limited tools it's got to deal with a problem that actually, the Government should be dealing with."

There's speculation the bank may link maximum lending to a borrower's income as another way to calm the market.

Mr Little says the bank has been increasingly vocal about the risks posed by the market, and the Government's doing nothing.

"If you look at the Government's response, they're half-measures and not well thought-through, and they aren't going to have a significant impact on the Auckland housing market."

Any move the Reserve Bank makes today will coincide with revelations in the New Zealand Herald a west Auckland home has changed hands four times in three months, its price escalating more than $20,000 each time on average, and is now worth about $250,000 more than its CV.

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