Labour’s removal of interest deductibility for rental properties will bite even harder from tomorrow, National’s Housing spokesperson Chris Bishop says.

“From April 1, landlords will only be able to claim for 50 per cent of interest costs as an expense on rental properties, down from 75 per cent in the tax year to 31 March 2023.

“This tenant tax couldn’t come at a worse time. Landlords are already under pressure because of Labour’s war on landlords and interest rates have significantly increased in the last year.

“The crunch on landlords will hit renters in the back pocket. Rents are up $175 per week on average since Labour came to office. Labour’s war on landlords is having a real impact and tenants are the collateral damage.

“Labour was warned by everyone – from officials to landlords – that the removal of interest deductibility would lead to higher rents and put pressure on the state house waiting list and emergency housing.

“Labour refused to listen. Now rents are up, the state house waiting list is up by more than 20,000, and the Government is spending $1 million per week housing people in motels.

“Labour’s Tenant Tax is hurting the very people it was intended to help. Mum and Dad landlords aren’t the enemy in our housing market. They are critical in addressing our housing supply problems.

“The next National Government will stop Labour’s war on landlords, reverse Labour’s interest deductibility changes, and take the bright-line test back down to two years.”

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