Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Improving Housing Affordability - More than Planning Reform

FOR IMMEDIATE RELEASE

31 October 2012

MEDIA RELEASE

Improving Housing Affordability Needs More than Planning Refrom

The New Zealand Initiative welcome the government’s response to the Productivity Commission’s recommendations on housing and planning but believe they are not going far enough.

“It is good to see the government’s commitment to improving housing affordability,” says Dr Oliver Hartwich, Executive Director of The New Zealand Initiative.

But commitment alone will not be enough to solve our housing affordability crisis.

According to Dr Hartwich, the main problem not addressed by either the Productivity Commission or the government is the link between residential development and local government finance.

“Under the current system, councils are often financially penalised when they plan for new housing development in their area,” says Dr Hartwich.

New infrastructure needs to be financed, but local government revenue does not increase enough to cover necessary infrastructure upgrades.

“By focussing mainly on the complexities of planning, we would ignore the most crucial obstacle to the delivery of new housing: covering the costs of new infrastructure,” says Dr Hartwich.

The New Zealand Initiative is currently undertaking research on a root-and-branch reform of local government finance. The research project examines ways of reducing supply constraints in the housing market by incentivising residential development at the local level. Such schemes have kept housing markets stable in Continental European countries such as Switzerland and Germany over long periods of time.

“To make New Zealand housing more affordable, we need to learn from countries that have a better track record in keeping house prices stable,” says Dr Hartwich.

Reducing the complexity of planning is a good first step in helping New Zealanders struggling to pay for housing. But it is only a first step.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO: