The Reserve Bank of New Zealand lifted the Official Cash Rate by 25 basis points to 2.75% on 2 September 2026, the second increase since it resumed tightening in July. The RBNZ has also signalled a further hike to 3.00% is likely in December, as it works to bring inflation — currently running at 4.1% — back within its 1–3% target band (Reserve Bank of New Zealand, Monetary Policy Statement, September 2026).
What it means for landlords
For property owners with a mortgage, particularly those on floating or shorter fixed terms, this is another incremental rise in holding costs. Combined with rates increases and insurance premiums, many landlords across New Zealand are re-running the numbers on rental returns. It's a timely reminder that predictable, well-managed tenancies matter more than ever — a vacancy or a mid-tenancy turnover is expensive at the best of times, and considerably more so when borrowing costs are climbing.
Why long-term tenancies matter right now
This is exactly where a long-term tenancy strategy earns its keep. Stable, well-vetted tenants who stay two, three or more years reduce vacancy periods, cut re-letting and marketing costs, and smooth out cash flow at a time when every basis point counts. At Home & Co, our focus on long-term residential tenancies is built around this idea: matching quality tenants with quality properties for the long haul, rather than chasing short-term rent maximisation that often comes with higher turnover risk and costs.
What tenants should know
For tenants, rising rates can flow through to rent pressure over time, though rent increases are still governed by the standard notice rules under the Residential Tenancies Act — landlords must give proper written notice and cannot increase rent more than once every 12 months for the same tenancy. If you're a tenant in a Home & Co-managed property, our approach favours stability and fair, transparent communication over reactive rent hikes.
The takeaway
With the RBNZ signalling one more hike is likely before year's end, both landlords and tenants should expect the cost-of-borrowing conversation to stay front and centre through summer. Good property management — the kind focused on long-term tenancy relationships — is one of the few levers landlords can actually control in this environment.