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

 


Key’s kick in the teeth to first home buyers

Phil Twyford
Spokesperson for Housing

David Parker
Spokesperson for Finance

15 July 2013

Key’s kick in the teeth to first home buyers

John Key is shutting thousands of first home buyers out of the market with his plans to impose lending limits for home mortgages, Labour’s Housing spokesperson Phil Twyford and Finance spokesperson David Parker said.

Labour understands the Reserve Bank will soon announce limits on high Loan to Value Ratio (LVR) home lending without an exception for first home buyers.

“Prices are spiralling out of the reach of first home buyers. Putting lending limits on banks will prevent poorer families becoming home owners. It advantages property investors and locks out first home buyers,” says Phil Twyford.

"That’s why Labour would apply an interim exception for first home buyers while we fix the supply crisis with our KiwiBuild programme of building 100,000 affordable homes over 10 years and bring in a capital gains tax to ward off speculators.

“Around 70 per cent of first home buyers have lending ratios of 80 per cent or higher. High LVRs simply give cashed-up speculators and property investors a free hand in the market.

“National’s policy will mostly hurt low to middle income earners in provincial cities and south and west Auckland. Wealthy people buying in the hot parts of the market in Auckland will be much less affected.

“Each per cent that the loan to value ratio (LVR) is hiked by adds $4,412 to the deposit for the average home in New Zealand, and a whopping $6,393 in Auckland, according to QV figures released only last week. A 10 per cent hike raises deposits by $44,125 across New Zealand and $63,938 across Auckland,” said Phil Twyford.

“John Key is completely out of touch. The problem for first home buyers isn’t lending, it’s the lack of affordable homes. House prices are increasing because there are too many speculators in the market and very few new homes are being built in an affordable price range,” said David Parker.

“A temporary exemption to lending limits is the responsible thing to do in the current housing market. The problem is the Government hasn’t got the mettle to take action where it’s really needed. That’s why first home buyers are going to be hurt yet again by National,” said David Parker.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news