The Property Institute wants first home buyers to be exempt from the Loan-to-value restrictions (LVR) following news that more than one million Kiwis are now locked out of home ownership.

Chief executive Ashley Church said the main barrier to first home ownership isn’t housing affordability or the cost of servicing a mortgage – it’s the LVR restrictions.

He said that means a generation of Kiwis can say goodbye to owning a home because of an artificial barrier created by the Reserve Bank to solve a problem which almost certainly doesn’t exist.

"Under the current LVR rule, first-home buyers, those folk who are currently renting, simply wouldn't be able to put together a deposit for a home and actually purchase a house. Now that's a scandal."

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