Mismanaged LVR process hurts first home buyers and regions

The Government has completely mismanaged the mortgage lending limits process and failed to consider the impacts on first home buyers or regions where house prices are stagnating, Labour Leader David Cunliffe says.

“Mortgage lending limits are going to lock thousands of first home-buyers out of the market. Alongside National's failed housing policy, they will create a generation of renters. Labour believes all Kiwis should have a fair chance at the home ownership dream. That dream is disappearing under National.

“Lending limits are National's failed attempt to solve the Auckland housing problem. But it is families in places like Marlborough, where prices are falling, that are being asked to fix it by saving more for a deposit.

“Why should a family in the regions have to stump up thousands of dollars more for a deposit to solve the housing problem in Auckland? That’s John Key’s job. If he really believes people in the regions think his policy is fair then he is completely out of touch.

“The paper trail shows the Government didn't consider the impacts on first home buyers until a month after they had signed the LVR agreement with the Reserve Bank. It is also clear they didn't consider the impacts on regions.

“Labour will make it clear to the Reserve Bank it must exempt first home buyers when using LVRs and consider targeting those regions where house price inflation is high.

“We will also fix the twin drivers of skyrocketing house prices -- rampant property speculation and the shortage of affordable homes. We will clamp down on speculators through a capital gains tax and build 100,000 affordable first homes through KiwiBuild.

“National is a Government that backs Auckland speculators. Labour is the party of first home buyers across the country,” David Cunliffe says.

ends

© Scoop Media

New Zealand Labour Party

New Zealand's Main Opposition Political Party

The New Zealand Labour Party is the oldest political party in the New Zealand Parliament. Currently the main opposition party the Labour Party Caucus has 34 MPs. Labour is optimistic for New Zealand's future, and with your support we will carry on our work for all Kiwis, and lead New Zealand to that future.

CONTACT NEW ZEALAND LABOUR PARTY

• Facebook

• Twitter - @nzlabour

Trial Over 'Anonymous' Donations: John Banks Resigns As Minister

ACT Leader John Banks today confirmed that he has stood down from his Ministerial positions following today’s decision at the Auckland District Court.

“Last week I indicated to the Prime Minister’s Chief of Staff that I would offer my resignation should the matter relating to my 2010 Mayoral Electoral return be committed to trial,” Mr Banks said...

“I intend to continue in my role as ACT Leader and MP for Epsom, and ACT will continue to support National on matters of confidence and supply. More>>