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

 

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news