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

Urgent Bill Planned:
MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency.

Mr Key says the decision was made after the Remuneration Authority’s latest determination which saw the total remuneration received by MPs increased by about 3.5 per cent...

The new legislation will be backdated to 1 July 2014, meaning the pay increase outlined in the latest determination will not be awarded. More>>

 

PARLIAMENT TODAY:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza? More>>

ALSO:

No Designers Or Visual Artists: Flag Panel Members Announced

The Government has appointed 12 New Zealanders as members of the Flag Consideration Panel which will engage with the public about a possible new New Zealand flag, Deputy Prime Minister Bill English says. More>>

ALSO:

Labour MP Stands Down From Portfolio: Comment From Carmel Sepuloni

The first I knew of my mother’s charges was when I was called by a reporter yesterday. I spoke to Andrew and we agreed there is a conflict of interest at the present time which means I will temporarily stand aside from the Social Development portfolio. It’s the right thing to do… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news