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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news