The Government's U-turn on rental tax breaks for property investors with 20-plus new or existing rentals has angered smaller mum and dad type property investors.
Last week the Government announced owners of 20-plus rentals in one development who offer tenancies of 10 years or more would be able to claim interest deductibility on their mortgages.
New Zealand Property Investor Federation President Andrew King told AM smaller investors feel they're being "disadvantaged" against the bigger property dogs.
"These are the type of people who own one or two properties, under this scheme you've got to own at least 20 in order to get the benefits."
And King said it will be tenants who are going to feel the pain.
"This makes it really expensive to provide rental property for the majority of tenants, so at the end of it, it's tenants who are actually going to lose out on this."
King added Kiwi tenants don't actually want brand new and expensive properties.
"They want a reasonable rent so they can actually afford to save a deposit to buy a home of their own."
He says the new policy makes it "a lot harder" to provide good quality and affordable rentals for a majority of Kiwi tenants.
Watch the full interview above.
