The Property Investors' Federation is predicting rental prices could rise

The Government last month extended the bright-line test -- and closed tax loopholes for landlords, in a bid to discourage investors pumping up the heated housing market.

A Federation survey indicated about 90 per cent of investors think it'll lose them about three-thousand-dollars per rental property.

NZPIF Executive Officer Sharon Cullwick says landlords will want to recover that drop in income.

She says 76.8 per cent of respondents say they will - or probably will - increase rental prices.