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.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Sugar: Auckland Leisure Centres Axe Unhealthy Drinks

Auckland Council is to stop selling drinks that are sweetened by sugar from vending machines at its leisure centres in a bid to try to reduce obesity and type 2 diabetes... More>>

ALSO:

Gordon Campbell: On Todd McClay’s Faulty Memory

Time and again, whenever an issue arises the initial response by government is to deny or diminish the problem – nothing to worry about here, everything’s OK, move on. Then, hang on. In line with the usual pattern, as embarrassing details emerged into daylight, the story changed. More>>

ALSO:

Labour's 'Future Of Work': Major Reform Of Careers And Apprenticeships

The next Labour Government will transform careers advice in high schools to ensure every student has a personalised career plan, Leader of the Opposition Andrew Little says. More>>

ALSO:

State Investments Management: Treasury Likes IRD, Not Education Or Corrections

The Inland Revenue Department has scored an 'A' in the first tranche of the Treasury's investor confidence rating for state agencies that manage significant Crown investments and assets, gaining greater autonomy as a result, while the Corrections and Education ministries gained a 'C' rating. More>>

ALSO:

Govt Goal: NZ To Be "Predator Free" By 2050

Prime Minister John Key has today announced the Government has adopted the goal of New Zealand becoming Predator Free by 2050... “That’s why we have adopted this goal. Our ambition is that by 2050 every single part of New Zealand will be completely free of rats, stoats and possums." More>>

ALSO:

Gordon Campbell: On The IOC’s Treatment Of Russian Sport, And Lone Wolf Terrorism

A blanket ban on Russian athletes would also have exposed the IOC to criticism that its treatment of Russia would have been marked contrast to its treatment say, of the track and field team from Kenya – a country about which the IOC has very similar doping concerns. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news