MPs Expand Property Portfolios and Claim Accommodation Subsidies Amid Pro-Landlord Reforms

In 2023-24 the government reinstated mortgage-interest tax deductibility for rentals, cut the bright-line tax to two years, and restored landlords’ right to end tenancies without cause, aiming to boost rental supply.

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Parliamentary pecuniary-interest records show at least 25 new rental or investment units added by coalition MPs since the reforms. Act MP Parmjeet Parmar added five rentals, expanding to eight homes after redeveloping two Auckland sites. National MP Kate Nimon added three rentals in Hawke’s Bay, citing her husband’s rental-real-estate business. Other MPs—including Erica Stanford, Simon Watts, Tom Rutherford, Joseph Mooney, Shane Reti, David MacLeod, Grant McCallum and Mark Mitchell—also recorded new properties, while seven MPs acquired Wellington residences. Speaker Gerry Brownlee listed four additional properties, later describing the entries as an error.

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Non-Wellington MPs may claim up to NZ$36,400 annually for “actual and reasonable” accommodation; ministers may claim up to NZ$52,000. Several MPs have bought Wellington apartments and used the allowance to service mortgages. Former mayor Andy Foster, owner of a $1.1 million Karori house, claimed the full NZ$36,400 after designating a newly purchased Wairarapa home as his family residence. Green MP Celia Wade-Brown also claimed the non-Wellington allowance while renting a Wellington flat. Prime Minister Christopher Luxon previously faced criticism for claiming NZ$52,000 on a mortgage-free apartment.

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The Act Party said the reforms did not drive Parmar’s purchases, though she praised them as lowering landlord risk. Nimon attributed her new rentals to her husband’s business. Brownlee described his additional property entries as an error and affirmed prior ownership. Foster argued that Wellington housing costs justify his claim. Labour leader Chris Hipkins said that claiming an allowance without corresponding accommodation expenses is hard to justify.

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Opposition members and commentators argue the subsidy system enables MPs with existing Wellington homes to claim public funds, calling for stricter eligibility rules.

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Brownlee’s error claim conflicts with earlier reports of two decades of incomplete property declarations. Parmar denies reform influence yet publicly praises the changes. Foster declined to confirm whether mortgage payments are covered by the “actual and reasonable” expense.

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• “By restoring mortgage interest deductibility and rebalancing tenancy laws, we’ve reduced the risk of providing a rental,” — Parmjeet Parmar, Act MP

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• “Nimon told The Spinoff, “My husband works in rental real estate and I’m a shareholder of the business.” — Kate Nimon, National MP

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• “the actual and reasonable expense is much higher than that” — Andy Foster, NZ First MP

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• “Claiming an accommodation allowance when you’re not spending that money on accommodation is something that’s very, very hard to justify,” — Chris Hipkins, Labour leader

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Labour leader Chris Hipkins said his party may campaign for changes to the accommodation-allowance scheme, while Prime Minister Christopher Luxon said any reforms should be implemented at arm’s length from politicians.

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