Wellington is bearing the brunt of fierce demand for rentals, and there is no relief on the horizon.

Some turn up to flat viewings in suits, others arrive with professionally designed rental CVs, all in the hope of standing out from the crowds that gather for flat viewings.

The central bank wants to cap bank lending to property investors with a deposit of less than 40 per cent at 5 per cent, according to a consultation paper released on Tuesday. It also wants to restore the 10 per cent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 per cent.