Inquiry into housing affordability in New Zealand

 
Media release – Commerce Committee

Inquiry into housing affordability in New Zealand

The Commerce Committee is inviting public submissions on the inquiry into housing affordability in New Zealand.  The closing date for submissions is 15 June 2007.

The terms of reference for this inquiry are as follows:

To ensure that as many New Zealand families as possible will be able to achieve the traditional Kiwi goal of home ownership at a fair and reasonable price.

Identify and quantify all components of the cost of

housing for first home buyers in New Zealand and examine

significant shifts over time. Particular interest should be taken

in:

1.      the effect on land supply, and therefore the price for land, of  both

a.       restraints on land supply for new housing, and

b.      land 'wastage' through 'large section only' subdivisions.

2.      household ability to service debt, meet costs of ownership and the changing relationship between income, property prices and mortgage interest rates;

3.      impact of increasing demand for residential properties by investors;

4.      local authority planning and approval processes;

5.      charges and levies imposed at all stages of the housing supply chain;

6.      building material and building labour costs as compared with those in other similar economies and countries;

7.      access to finance for house building on multiply owned land;

8.      impact of changing preferences for home ownership;

9.      range of financing products available for first home owners.

Identify which components of the cost of housing can and

should be brought under control, or freed from restrictive

controls, with a view to increasing the affordability of housing.

Identify intervention programs that may improve the ability of

individuals and families to purchase a home, their success and

operation. Consideration will be given to:

10.  Schemes such as 'shared equity' and 'rent to buy”, the capitalisation of benefits and a sell and build strategy for some state housing stock;

11.  How proven third sector housing organisations currently help individuals and families reach their home ownership goals.

Submissions can be lodged via the internet at www.parliament.nz in ‘Submissions Called For’ or if by post please provide 2 copies of each submission.  Those wishing to include any information of a private or personal nature in a submission should first discuss this with the clerk of the committee, as submissions are usually released to the public by the committee.  Those wishing to appear before the committee to speak to their submissions should state this clearly and provide a daytime telephone contact number.  For further guidance on making a submission, our publication Making a Submission to a Parliamentary Select Committee can be found on our web site at www.clerk.parliament.govt.nz.

Submissions should be addressed as follows:

Steven Mitchell

Commerce Committee Secretariat

Parliament House

WELLINGTON

Ends