Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


English’s new tools little help to home buyers


David
PARKER
Finance Spokesperson
Phil
TWYFORD
Spokesperson for Housing

28 February 2013 MEDIA STATEMENT
English’s new tools little help to home buyers

Bill English’s proposal to allow use of loan to valuation ratios is yet another reason to add to the supply of affordable homes, say Labour’s Finance spokesperson David Parker and Housing spokesperson Phil Twyford.

Phil Twyford says: "Bill English doesn’t understand the housing problem. There simply aren’t enough modest affordable homes.

“The new Reserve Bank rules could require home buyers to put up a bigger deposit. Depending on the design, that could create another hurdle to leap over. Loan to value ratios must be part of a broader attack on excessive housing prices, including addressing a shortage of supply and high material costs.

“The housing affordability crisis needs a multi-pronged approach to reduce the cost of new homes. Labour's KiwiBuild policy, which will deliver 100,000 affordable homes over 10 years, is a comprehensive sustainable solution that would help make loan to value ratios more effective,” Phil Twyford said.


David Parker says: “The new tools are a necessary addition to the Reserve Bank’s toolkit but they require finesse and subtlety in their design. Otherwise they risk doing more harm than good.

“Limits on loan to value ratios for home lending are used to dampen the housing market in places like Canada. One option used overseas is to exempt first home buyers from the rules, or allow them to put up a smaller deposit.

“Bill English is only doing half the job, unless he broadens the objectives of the Reserve Bank. He risks making it harder for first home buyers without the benefits of creating better jobs and higher wages that full reform of the Reserve Bank Act will help bring,” says David Parker.

________________________________________


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news