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

 

PARLIAMENT TODAY:

Mt Eden Prison: Serco Inquiry Extended

A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. More>>

ALSO:

Health And Safety: Late Addition Of National Security Provisions A Concern

The New Zealand Law Society has expressed its significant concerns at the last-minute addition to the Health and Safety Reform Bill of provisions for a closed material procedure for court proceedings where national security is involved. More>>

ALSO:

Rugby And Beer: World Cup Alcohol Bill Passes

ACT MP David Seymour’s Sale and Supply of Alcohol (Extended licensing hours during Rugby World Cup) Bill completed its third reading by 99 to 21... More>>

ALSO:

Gordon Campbell: On The Flag Campaign

So far, the public has treated the government’s flag campaign with something between disinterest and disdain. Most New Zealanders have instinctively seen through the marketing hype involved. More>>

Change For 2017: Local Govt To Decide On Easter Sunday Trading

The Government is to enable local communities, through councils, to decide whether retailers can open on Easter Sunday, Workplace Relations and Safety Minister Michael Woodhouse announced. More>>

ALSO:

(And Targets Worse Than Australia's): Foresters Abandoning Emissions Trading Scheme

The Government’s gutting of the Emissions Trading Scheme has caused foresters to leave and emissions to rise, says Labour’s Climate Change spokesperson Megan Woods. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news