An upcoming tweak to strict lending laws is positive news for first-home buyers, a local real estate agent says.

The government is amending the Credit Contract and Consumer Finance Act (CCCFA) for a second time after a December amendment led to a significant drop in mortgage activity around the country.

Proppy’s real estate agency co-founder Hannah Walker said it is “great news” that the government has signalled the change.

“The change suggests that lenders would not need to check current spending from recent transactions when assessing future spending, nor would current savings and investments be regarded as outgoings,” Hannah said.

Some buyers have been unable to secure mortgages since the new lending restrictions came into effect, and Hannah is optimistic the changes will make mortgages more accessible.

“We expect this to have a trickle-on effect in the next two-to-three months, especially in the ‘first home’ buyers’ market.”

The tighter lending rules were imposed after almost two years of runaway house prices but consumer affairs minister David Clark said the amendments would help reduce unintended consequences.

While the initial CCCFA changes have affected some areas of the market, the higher end of the Queenstown Lakes market has remained strong and there is still demand from buyers with deep pockets, Real Estate Institute of New Zealand regional director Gail Hudson said.

In Wānaka, the high-end property category is especially strong, Hannah said.

Still, some sales were “starting to wobble” as some buyers are choosing to wait and see what will happen in the property market over the next few months, she said.

The plus side of this is more properties for buyers who are currently looking.

While prices and activity in the market remain strong generally, vendors should no longer expect the lightning fast sales of the last year or two, Hannah said. 

“We just caution patience from our vendors when selling as that froth of FOMO [fear of missing out] has well and truly bubbled away and buyers are taking more of an informed approach to buying.

“It may just take a little longer to put up the sold sticker in this market.”

Changes to the CCCFA are due to take effect in June.

PHOTO: Supplied