Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

 

Budget figures show deepening housing crisis

David Cunliffe
Labour Leader

16 May 2014

Budget figures show deepening housing crisis

Treasury projections in the Budget predict worsening housing affordability and rising interest rates outstripping wage increases, underlining National’s abject failure to address the housing crisis, says Labour Leader David Cunliffe.

“Within five years, it will cost 63 per cent of the average full time wage to service an 80 per cent mortgage on an average home. Right now, it costs 49 per cent of the average full time wage.

“By failing to announce anything that will tackle the housing crisis, National has lit the fuse on a time bomb.

“These projections guarantee that home ownership rates will continue to fall, and a generation of young New Zealanders can kiss goodbye to the Kiwi dream of home ownership.

“Budget projections show the average Kiwi will gain around $2,600 a year in real wages, about $1,800 after tax. Real mortgage payments are slated to go up by around $2,900 over the same period based on Treasury’s data.

“Rising housing costs will hollow out household incomes in middle New Zealand, and drive struggling families deeper into poverty.

“This crisis is also being driven by surging migration figures. Tinkering with tariff duties and planning rules is nowhere near enough.

“National might be willing to sit on its hands while home ownership becomes a distant dream but Labour is not.

“The Labour-led Government I lead will build 100,000 affordable starter homes, will implement a Capital Gains Tax to take the speculative heat out of the market, put a stop to offshore speculators bidding up prices, and give the Reserve Bank the option of raising savings rates rather than interest rates.

“Affordable housing is a top priority for New Zealanders and will be so for the incoming Labour-led government,” says David Cunliffe.

ENDS

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.