Phil Twyford
Housing spokesperson

10 April 2014

First home buyers shut out as LVRs bite

The bad news continues for young Kiwis as the latest Core Logic report shows the proportion of first home buyers has declined since LVR lending restrictions came into force, says Labour’s Housing spokesperson Phil Twyford.

Twenty two centres across the country have had a drop in first home buyers while only four have increased slightly. The worst hit areas are Queenstown Lakes, Rotorua and Napier with buyers down over 5 per cent.

“This is an on-going disaster for young families who want to own their own home.

“First home buyers are collateral damage in the Government’s on-going failure to get a grip on the housing crisis.

“And as the Core Logic data shows, regional New Zealand is badly affected. Ninety five per cent of house price inflation is happening in Auckland and Canterbury, and yet first home buyers in places like Napier, Hamilton and Dunedin are taking an unnecessary hit.

“The housing crisis will intensify as interest rates head to 8 per cent and desperate first home buyers are driven into the arms of the finance companies,” says Phil Twyford.

“National refuses to tax speculators through a Capital Gains Tax and refuses to build large numbers of affordable houses. Their policy is to just tinker with the planning laws, an approach which will guarantee the housing crisis continues unabated.”

ENDS

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