Ban on foreigners buying homes in New Zealand comes into force

A ban on foreigners buying homes in New Zealand has come into force, as the Labour-led government fulfils an election promise that critics say could be a popular but won’t solve the lack of affordable housing.

Housing became a major campaign issue for an election last year that ended the National Party government’s near decade in power and landed Jacinda Ardern the premiership in a surprise result one year ago.

Ardern had blamed overseas speculators for driving up prices, making it unaffordable for many young Kiwis looking to buy their first home. Nationwide prices have gone up 60% in the last decade, and in Auckland, the largest city, prices have almost doubled.

But critics say the Labour-led coalition’s answer to the problem – banning foreigners – won’t make a big enough difference in a market where economists reckon there is a shortage of around 100,000 homes.

The Guardian