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


Govt lack of housing plan will hit homeowners

David Cunliffe
Labour Leader

30 January 2014

Govt lack of housing plan will hit homeowners

National’s inept response to skyrocketing house prices and rising rents will heap more pain on homeowners, renters and first home buyers with interest rates set to rise soon, says Labour Leader David Cunliffe.

“Life is about to get harder for homeowners, with many already struggling to meet mortgage payments. The Reserve Bank Governor has indicated interest rates will rise soon, making it much more difficult for homeowners to make ends meet.

“If mortgage rates were ultimately to rise to 8 per cent – as has been suggested by some economists -- for someone currently on a 5.75 per cent rate, this would add $136 a week to a $500 a week mortgage.

“Interest rate rises will also cause an increase in rents, adding to the cost of living burden for many low-to-middle income families who can’t afford a house, are working harder than ever, and are struggling to make ends meet.

“First home buyers will be hit especially hard by rising mortgage costs, which come on top of the introduction of Loan to Value Ratios last year. The Government and Reserve Bank must now admit they got LVRs wrong. It’s time to exempt first home buyers.

“National has repeatedly claimed credit for low interest rates. They now have to take responsibility for looming rate hikes.

“Interest rate rises will also push up the already high exchange rate, creating obstacles for our exporters, dampening business expansion and slowing job creation.

“Rising interest rates will put further pressure on hard-pressed Kiwis and will only widen the inequality gap,” says David Cunliffe.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Public Sector Still Shrinking: Record Low Number Of 'Backroom Bureaucrats'

Ongoing restraint in the public sector and a focus on better frontline services has seen a further reduction in the number of core Government employees, State Services Minister Paula Bennett says. More>>


Disobeying The Law: Police Censorship Of Crime Research “An Outrage”

The Green Party is calling on Police Minister Michael Woodhouse to ensure Police scrap controversial contracts that place onerous restrictions on academic researchers’ access to Police data, the Green Party says. More>>


Q+A Transcript: Groser ‘Not Expecting’ Failure At UN Climate Talks

‘I will be very surprised if we don’t get an agreement. I think it’s a completely different situation to Copenhagen for a number of reasons. We’ve got a much more realistic negotiating proposal on the table. Secondly, I think the science has strengthened...’ More>>


Greenpeace Protest:

Climate Talks, Immigration And Housing: PM's Post Cabinet Press Conference

Prime Minister John Key began by talking about his recent attendance at the APEC and ASEAN summits. He segued neatly from the opportunities available in Vietnam to outlining his upcoming itinerary which includes Malta, Paris and Berlin. More>>


After Urgent Law Change: Beneficiaries Urged To Act Immediately

I am hoping that thousands more people will be enabled to lodge their review... people without internet, who don't even realise that this has been happening. If just a fraction of the people on facebook can help others to put in reviews tomorrow it could improve so many more peoples Christmas. More>>


Auckland: Phil Goff To Run For Mayor In 2016

Phil Goff has today announced his decision to stand as an Independent candidate for Mayor of Auckland next year... As Mayor, Phil Goff will focus on a number of issues that directly impact on the lives of Aucklanders, including tackling traffic congestion and increasing the housing supply. More>>


Foreign Affairs: Mike Moore To Step Down As US Ambassador

Yvonne and I are giving notice to MFAT that we will be leaving the Post just before Christmas on the 16th December... I am now the longest serving continuous Ambassador to the US. I didn’t seek this job but felt I should do it because great issues were at stake. The time was ripe for it. More>>


Fox Glacier: Seven Dead In Helicopter Crash

The operation to recover the victims of Saturday’s helicopter crash at Fox Glacier is a technically challenging task calling for specialist skills in an unforgiving environment, says operation commander Inspector John Canning. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news