Hon Dr Nick Smith

Minister for Building and Housing
1 August 2016

Labour mislead on HomeStart data

Claims by the Labour Party that the number of people being declined KiwiSaver grants for a new home are increasing is deliberately misleading and overlooks the trebling in the number of people using the scheme, Building and Housing Minister Dr Nick Smith says.

“Labour is getting a reputation for telling only half the story on housing. The number of grants declined under the scheme has increased from 1834 in the year to June 2014 to 4951 in the year to June 2016 but the number of successful grants has also increased from 6162 in the year to June 2014 to 15,411 in the year to June 2016. The proportion of grants declined is unchanged.”

Assistance for first home buyers was part of the original KiwiSaver scheme introduced in 2006. The scheme was changed by the Government from 1 April 2015 by doubling the grants for buyers of new homes and by increasing both the income and house price caps, and this assistance named KiwiSaver HomeStart. The income and house price caps were again adjusted today to reflect increases in wages and house prices.

“The main reason about 30 per cent of applicants each year have been declined under both Labour and National’s KiwiSaver schemes to support home buyers is because they have not maintained their continuous KiwiSaver contributions for the required three years. The second most common reason for decline was because their incomed exceeded the allowed caps. The number of people declined grants because of exceeding the house price caps fell when the Government changed these in 2015.

“KiwiSaver HomeStart has now helped more than 15,000 New Zealanders pull together a deposit to buy their first home. The increases in both the income and house price caps that take effect today will ensure more are assisted in the coming year. The Government remains committed to helping 90,000 New Zealanders into their first home in the scheme’s first five years.”

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