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

 


Jennian Comes Out in Support of Master Builders Proposal

Jennian Comes Out Swinging in Support of Master Builders Proposal

The mortgage lending restrictions implemented by the Reserve Bank are causing a dramatic reduction in enquiry for new houses that will eventually lead to fewer homes built, says leading residential new-home builder Jennian Homes. “We predicted this and now it is happening” says Jennian Homes Director, Richard Carver. “The Reserve Bank must act before it is too late.”

Jennian Homes has come out in strong support of the proposal put forward to the Reserve Bank by the Registered Master Builders Federation, calling to exempt new homes from the damaging loan-to-value ratio (LVR) restrictions.

Mr Carver is pleased to see that the Reserve Bank is finally starting to listen to the industry and may review the LVR scheme, especially in relation to first home owners. “We strongly encourage the Reserve Bank to act swiftly and exempt new house construction from the LVR regulations as this will increase the supply of new houses that are desperately needed.”

“We believe that new home construction should have been excluded from the LVR rules in the first place.”

Housing Minster Dr Nick Smith says consent numbers are not showing any major reductions but he fails to see that a significant drop in enquiry today will not be fully realised in consent numbers until April 2014.

Up to 30 per cent of new building enquiry is being negatively impacted by the new restrictions. This equates to thousands of new houses on current consent forecasts.

The actions from the Reserve Bank greatly alienates young New Zealanders from entering the new home market and further places the kiwi dream of owning their own home on the backburner. This will benefit property investors at the expense of would be home owners.

As the government hides behind the Reserve Banks neutrality, the Kiwi dream of home ownership slips further from the grasp of those without a 20 per cent deposit.

Further to this handbrake being applied to the new housing industry, some economists are now predicting the first interest rate hike to be as early as January 2014. If this comes to fruition it would be nothing short of the Government continuing to kick the industry while it’s down.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news