Govt must take action on LVR impacts

The Government must take responsibility for the impact LVRs are having on first home buyers, new house building and the regions now that the Reserve Bank has revealed the restrictions have more than halved low-deposit lending, says Labour’s Housing spokesperson Phil Twyford.

“The Reserve Bank restrictions are starting to bite but from all the evidence we’ve seen they are not yet having an impact on the primary problem – skyrocketing house prices.

“Bank surveys show LVR restrictions have shut the door on first home buyers with speculators filling the gap and keeping house price inflation high.

“The Master Builders’ Federation has said that 5,000 fewer homes will be built because of LVRs – a blow to supply that will only see house prices increase more quickly.

“And we know that buyers in regions where house prices are actually stagnant or falling are being hit by the restrictions unnecessarily.

“The Reserve Bank today has shown it is making sure that LVRs will be enforced. The real problem is that the National Government is refusing to take responsibility for the collateral damage,” says Phil Twyford.

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