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

 


Housing bubble can be controlled

16 July 2013

Housing bubble can be controlled without targeting first home buyers

Families do not need to be locked out of buying their first home by the introduction of measures to control house price inflation, Green Party Co-leader Dr Russel Norman said today.

Following the signing of an agreement with the National Government over the use of macro-prudential tools to limit house price inflation, the Reserve Bank looks set to introduce Loan-to-Value Ratio (LVR) restrictions on all loans.

The Green Party’s position is that LVRs should be part of a suite of measures to address home affordability and should be differential, with more lenient ratios for first home buyers than for property investors.

“With smart policy, we can stop the house price bubble without locking Kiwi families out of home ownership,” said Dr Norman.

“LVRs should be more lenient for first home buyers than for property investors. It would be unfair to require large deposits from first home buyers. They’re not the ones forcing up houses prices - speculators are.

“It’s very concerning that John Key doesn’t seem to be fighting for first home buyers and is standing by while the Reserve Bank moves to lock many of them out of buying a home.

“LVRs are a good move but they should be targeted at property investors and speculators, not at families trying to buy a home, and they shouldn’t be the only tool.

“We need a set of measures to ensure that house prices are fair and enough affordable homes are available. These include a capital gains tax (excluding the family home), restrictions on overseas investment in residential property by non-citizen non-residents, a government-led programme of affordable house building, and the Greens’ Progressive Ownership shared equity scheme.

“With practical, smart policies like these we can stop rampant house price inflation, which not only puts home ownership out of reach for many but also increases our international debt and diverts capital investment from the productive economy into housing speculation,” said Dr Norman.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Budget: Health Funding Must Keep Up With Need

NZNO: “The nursing team has been doing more with less for years. It’s getting to the point that we’re really worried about our colleagues, our patients, our jobs and the level of health care available for people in our country." More>>

ALSO:

Emissions Inventory: Time For The Government To Do The Right Thing

It’s time for the National Government to step up and do the right thing to reduce climate pollution as data shows New Zealand’s greenhouse gas emissions are higher than ever, the Green Party said today. More>>

ALSO:

Budget 2016: More Partnership Schools To Open

Seven new schools will join the eight Partnership Schools already open, along with further new schools opening in 2017. “The growth of this policy is a reflection of the high level of interest from educators and community leaders,” Mr Seymour says. More>>

ALSO:

No Correspondence With English: Did Brownlee Make Up Sale Of Navy Ships ‘On The Hoof?’

Having revealed that several Royal New Zealand Navy vessels have not left port in years, New Zealand First is now asking the Minister of Defence to prove he did not come up with the idea of selling HMNZS Taupo and Pukaki until the media asked him. More>>

Housing Plans: Labour- Abolish Auckland Urban Boundary
The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis. More>>
Greens - State House Solution
The Homes Not Cars policy allows Housing New Zealand to retain its dividend and, in addition, would refund its tax, to spend on the emergency building of around 450 new state houses. More>>

ALSO:

Houses And Taxes: Post-Cabinet, Pre-Budget Press Conference

The Prime Minister said that the pre-budget announcements showed that his Government is “investing in a growing economy”. He re-affirmed the National Government’s commitment to lowering personal tax rates but that any such change must fit with the fiscal reality of the time. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news