Image copyright Getty Images Image caption New Zealand is facing a housing affordability crisis

New Zealand's parliament has banned many foreigners from buying existing homes in the country - a move aimed at making properties more affordable. But that won’t happen in the future.”

The ban on foreign ownership is at the heart of the government’s plan to tackle the housing crisis, as well as its commitment to build 100,000 affordable new homes in ten years, and increase social housing stock by 6400 homes in four years. The government slightly relaxed the proposed ban in June so that non-residents could still own up to 60 percent of units in large, newly built apartment buildings but would no longer be able to buy existing homes. Foreigners who live in New Zealand and have residency status will still be able to buy homes, as will people from Australia and Singapore thanks to existing free-trade agreements. Media playback is unsupported on your device Media caption David Parker: "It's the right of people who live permanently in our country... to buy our homes"

New Zealand's Trade and Economic Development Minister David Parker described the passage of the bill as a "significant milestone". We don’t think they should be outbid by wealthier people from overseas.”

In a speech to parliament on Wednesday he said: “We should not be tenants in our own land.”

Only a quarter of adults in New Zealand own their own home, compared with half in 1991, and in the last five years homeless figures have increased, with some New Zealanders forced to live in cars, garages and under bridges. Whether it’s a beautiful lakeside or oceanfront estate, or a modest suburban house, this law ensures that the market for our homes is set in New Zealand, not on the international market.”

While the new bill prohibits foreigners from owning homes in New Zealand, there are some noteworthy exceptions. "We oppose the bill because we don't believe that it actually fixes any problem," Collins said.
New Zealand's parliament votes to ban the sale of homes to non-resident foreign nationals amid a housing affordability crisis. Australians and Singaporeans are exempt due to free-trade deals.