2. Question No. 2—HousingSHANAN HALBERT (Labour—Northcote) to the Minister of HousingQuestion No. 2—Housing2. SHANAN HALBERT (Labour—Northcote) to the Minister of Housing: What action is the Government taking to increase the supply of affordable rental housing?Hon Dr MEGAN WOODS (Minister of Housing): The Government is encouraging more long-term rental options by giving Build to Rent developers an exemption on the interest deductibility limitations. We are exempting Build to Rent developments from interest limitation in perpetuity. This will attract new sources of forms of stable long-term investments such as iwi or superannuation funds. As we know Build to Rent projects often need a longer time frame of 50-plus years to realise returns. These exemptions will be available for any Build to Rent development for as long as the homes are held as long-term rentals. They also need to offer tenants leases of at least 10 years and have additional personalisation policies beyond the minimum requirements of the Residential Tenancy Act. This is something we've been working on with the sector since February 2021. We recognise that Build to Rent can help to continue the current momentum of new supply and improve the quality of rental housing with new warm dry secure homes.Shanan Halbert: What responses has she heard from the sector?Hon Dr MEGAN WOODS: This exemption has been well received by the sector including the Property Council of New Zealand who said Today's announcement is one of the best levers to unlocking the potential of Build to Rent … We support the Government's desire to enable Build to Rent in order to provide warm dry rental homes that offer Kiwis long-term security of tenure." The Property Council has also said their research indicates that members are poised to deliver around 25000 Build to Rent homes in the next decade. I also saw positive responses from developers including Mark Todd of Ockham Residential who said "I'm pleased the interest deductibility is dependent on build to rent operators offering their residents a minimum 10-year tenancy. That is fair that is right: that is a step towards giving these residents the security they need to make the home they pay for truly theirs not a tenuous arrangement dependent on the grace and favour of landlords."Shanan Halbert: How will this exemption benefit tenants?Hon Dr MEGAN WOODS: We believe security of tenure is critical for people who are renting. That is why to qualify for the exemption developers will need to offer tenants leases of at least 10 years that tenants are able to break with a 56-day notice period. Tenants can ask for shorter agreements if they wish and the developer will still qualify for the exemption. This requirement will enable people to settle and personalise their homes reduce how often they must find a new place to live and all those associated moving costs. It will also allow families to start their kids at school and know that they won't have to move. In comparison to the median tenure in the private market of only 16 months the Government agreed 10 years to be a suitable minimum period as it reflects the importance of long-term housing stability on people's lives."