A survey by Quotable Value (QV) in New Zealand shows that during the next six months some 53% of landlords intend to increase their rents. Most landlords surveyed said their rental increases would be between 1% and 5%. However some 19% are hoping to raise rents by between 6% and 10%. The main reason given was to cover additional costs imposed on their property arising from the recent Budget.

QV say that the biggest impact of the Budget changes was one relating to depreciation as from 2011 investors will be unable to make some of their depreciation claims.

Jonno Ingerson, research director at QV, said: “The changes to the depreciation rules will affect most landlords, closely followed by the increase in GST and the lowering of the personal income tax rate."

Ingerson stated that the number of investors intending to buy or sell property is quite low, while those that intend to sell are either going to do so quickly or not for at least six months.

Ingerson concluded: "For those intending to buy more property, few intend to do so within three months, but seem to be waiting longer, perhaps for prices to fall further."