Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Low pay makes home lending restrictions worse


30 September 2013

Low pay makes home lending restrictions worse

New loan to value ratios coming into effect tomorrow will hit hard at those on low incomes says the Council of Trade Unions Secretary, Peter Conway.

Peter Conway says "house prices in many parts of New Zealand are five to seven times annual household income and it is just getting too hard for many New Zealanders to own a home.”

"Not only have house prices been rising significantly for many years, but low rates of pay, insecure work, and minimal pay rises have made it harder for people to save for a deposit and service a mortgage."

“Home ownership in Auckland for instance has fallen from 74 percent in 1986 to 58 percent today.”

“What we need is an increase in the supply of affordable homes, and decent pay rises so that household incomes are boosted. That is how we can improve home affordability. A capital gains tax would help too.”

The CTU supports the greater use of macro-prudential tools by the Reserve Bank but believes that they should be used more surgically. “First-home buyers should be exempt from the new home-to-value restrictions, and the restrictions could be limited to Auckland where prices are increasing most rapidly. We also want to see more emphasis on other tools identified by the Reserve Bank (such as sectoral capital requirements) and consideration of a greater variety of tools to target different sources of inflation and risks to the financial system.”

"But the Reserve Bank should not be left to act on its own, it needs supporting policies from the government that make sure affordable homes are available, and that people have good quality housing whether or not they can afford to buy," says Peter Conway.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news