Certified Builders Association of New Zealand, the country’s largest building trade organisation, has applauded today’s Reserve Bank announcement that new residential construction loans will now be exempt from the loan-to-value (LVR) restrictions.
Chief Executive Grant Florence was pleased that the Reserve Bank had listened to industry feedback and had responded accordingly. “The decision to exempt new residential construction from the loan to value ratio (LVR) restrictions will have a positive effect on house supply in Auckland and will help build confidence in the regions,” Mr Florence said.
In November, he said that Certified Builders was concerned that the LVR restrictions were having a major impact on sales enquiries, which would ultimately impact future building activity across New Zealand.
Certified Builders has approximately 2,800 individual builder members and 1,700 business member firms. This represents a substantial proportion of the builders actively involved in the construction industry in New Zealand. The majority of Certified Builders members are small-medium building firms whose focus is on the more complex, architecturally-designed, residential and light commercial projects. It has some franchised or high-volume home building companies. All Certified Builders members must hold a formal trade qualification in the building/construction trade. This makes Certified Builders different from the other more widely-based industry organisations.