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

 


Government housing failure forces up interest rates

Government housing failure forces up interest rates


Homeowners and first home buyers will feel today’s interest rate increase as the tightening of the noose, says Labour’s Finance spokesperson David Parker and Housing spokesperson Phil Twyford.

“The Government has been incapable of reining in the out-of-control housing market, leaving it instead to the Reserve Bank,” says Phil Twyford.

“Homeowners will have a sickening feeling in the pit of their stomach today, knowing there are several more increases in the pipeline that will add hundreds of dollars to monthly mortgage repayments.

“The Reserve Bank Governor said mortgage interest rates will get close to 7% by the end of the year, adding $233 to monthly costs on a $300,000 mortgage

“National has been quite happy to sit and watch first home buyers and ordinary Kiwi families either shut out of the housing market or financially squeezed, while property speculators and the big end of town clean up,” says Phil Twyford.

“Today’s rate rise follows five years of out-of-control house price increases which have seen the average Auckland house rise over 40% while National has been in government,” says David Parker.

“In Auckland, where prices are highest, it is not uncommon for people in the last few years to have taken on mortgages twice that size. As the year goes on those people are really going to feel the heat.

“Interest rates rises not only hurt homeowners they also put the squeeze on all businesses. Exporters suffer the double blow of a higher exchange rate and higher borrowing costs

“Yesterday the trade weighted index hit a post-float high, showing how tough it is for exporters outside of the primary sector.

“Low interest rates due to the global financial crisis were the only thing National could claim were working for homeowners.

“Now you can add rising interest rates to sky high prices in Auckland, extortionate rents in post-quake Canterbury and LVR lending restrictions that have shut first home buyers out of the market.

“This Government’s housing policy is in tatters,” says David Parker.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Plain Packs Plan: Gordon Campbell On Tobacco Politicking (And The TPP Death Watch)

Has Act leader David Seymour got the easiest job in the world, or what? Roll out of bed, turn on the radio and hmm…there do seem to be a lot of problems out there in the world. Must think of something. And so it came to pass that this morning, David Seymour took up his sword and shield to fight for a world that’s about to be denied the rich and vibrant beauty of tobacco advertising. More>>

ALSO:

.


RECENT TPP MEETING:

Professor Ian Shirley: The Budget That Failed Auckland

The 2016 budget offered Auckland nothing in the way of vision or hope and it continued the National Government’s threats against the Auckland Council. Threatening the Council with over-riding its democratic processes if it fails to release land for housing is a bullying tactic aimed at diverting attention away from the fundamental problems with housing in the region. More>>

ALSO:

PM's Post Cab Presser: Budgets, Trusts And Pacific Diplomacy

Today Prime Minister John Key summarised last week’s budget and provided further detail about his upcoming trip to Fiji. He said that there has been “plenty going on” in the last couple of weeks and emphasised the need for Auckland council to facilitate more housing supply. More>>

ALSO:

Max Rashbrooke: A Failure Of Measurement: Inside The Budget Lock-Up

Shortly after the embargo lifted at 2pm news organisations started filing reports claiming that health, and to a lesser extent housing and education, were the ‘big winners’ out of the Budget. It failed to take into account the fact that in most cases the apparent increases were in fact cuts. Because of the twin effects of inflation and population. More>>

ALSO:

DOCtored Figures: Minister Clarifies DOC Budget

“Commentators have overlooked the fact $20.7m of that perceived shortfall is new funding for Battle for our Birds 2016, provided for in last week’s Budget...” DOC also has approval in principle to carry over a further $20m to 16/17 due to unexpected delays in a number of projects. More>>

ALSO:

For The Birds: Gordon Campbell On The Budget

Budgies, so their Wikipedia page says, are popular pets around the world due to their small size, low cost, and ability to mimic human speech. Which is a reasonably good description of Finance Minister Bill English eighth Budget. . More>>

Max Rashbrooke On The 2016 Budget

The best label for this year’s announcement by Bill English might be the ‘Bare Minimum Budget’. It does the bare minimum to defuse potential political damage in a range of areas – homelessness and health are prime among them – but almost nothing to address the country’s most deep-rooted, systemic social problems. Indeed the Budget hints that these problems may get worse. More>>

ALSO:

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news