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


Closer Look Needed On Housing Affordability Solutions



Closer Look Needed On Housing Affordability Solutions

The Labour Party's focus on housing unaffordability is a welcome move at a time of crisis, although root causes of the issue still need to be addressed in greater detail if the crisis is to be resolved, says Property Council New Zealand.

With the spotlight now firmly on how to make houses affordable for first home buyers, the Government and opposition need to look closely at the whole spectrum of issues and consider what can be done to address all the factors which push up the price of a new home, said Property Council’s chief executive, Connal Townsend. “This issue is not going to go away until it is adequately addressed from all sides of the unaffordability equation.

“Housing unaffordability is caused by a range of issues, especially the supply of land. There are questions to be answered on where and how greenfield and brownfield land is to be acquired, particularly in Auckland. Consenting fees, development contributions and other levies are also core contributors to the rising price of new houses, with costs often passed to the purchaser – effectively a first home buyer’s tax.

“Another issue is the ability to source finance for new developments, which has been particularly tight in recent years. Labour’s policy seeks to tackle this issue by proposing government-issued Home Ownership Bonds. However, we would expect property development companies to be involved in the construction process, as a balance is always needed between public and private development.

Property Council has long believed the built environment should be given greater recognition in the Resource Management Act. “Labour’s intention to introduce a National Policy Statement under the RMA to ensure planning rules and consenting decisions support affordable housing is a laudable move,” he said.

“With a policy such as this, it is important to consider all the costs. We note that Labour has given particular attention to the construction of apartment buildings. This type of property development typically costs $6,000 to $6,500 a square metre for a low to medium rise apartment. We would need to see greater detail on how Labour will achieve a maximum price of $300,000 for a new built home.

“Property Council looks forward to seeing Labour’s policy when it has been worked through in more detail when it considers levies, charges and red tape that contribute to the cost of building and buying a home.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news