Robertson wrote to the Reserve Bank in November seeking advice on how to stabilize house prices with interest rates at record highs, after data showed prices had climbed 20% to the same period the previous year.
It must now take the impact on house prices into account when making monetary and financial decisions.
The Reserve Bank has done its part to cool the housing market, reinstating loan-to-value (LVR) restrictions starting in March, which means real estate investors must make a 30% down payment for a house and first-time buyers 20%.
But some have questioned the Reserve Bank’s loan financing program (FLP) – making up to $ 28 billion available to banks at a record 0.25% interest rate, to lend and help to stimulate the economy.
Since banks are not required to target loans to business investment rather than real estate investors, some say this only fuels demand for housing.
The government is trying to solve the housing crisis by replacing the Resource Management Act (RMA), the complex planning law accused of holding back new developments. But with more than 800 pages to replace, it won’t be adopted until 2022.
The national urban development policy statement will require councils to reduce planning constraints and plan for growth, allowing for greater intensification in cities, but National says that will have no impact until 2024.