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

Pre-Caucus Audio:
David Cunliffe And
The Future Of The
Labour Party

David Cunliffe met with the press today after Saturday’s disappointing election result for The Labour Party.

“We are all deeply concerned by the result of our party vote. I want to be clear that I, as leader, am responsible for that result” Cunliffe said. Although he called the results “deeply disappointing” Cunliffe said “the voters are always right”.

He felt that Labour needed to make improvements and take action: “We don’t need months to get feedback from members of the public, we've had a lot over the past 48 hours”. More>>

Update: After a seven hour caucus meeting David Cunliffe has announced Chris Hipkins and Carmel Sepuloni as new party whips and said the Labour council will hold an independent review into the election result. He did not comment on any leadership vote.

 

Gordon Campbell: On Labour’s Very Bad Year

While Labour leader David Cunliffe still appears to be in denial about the extent of Saturday night’s debacle, there was hardly a single redeeming feature about the election results for the centre-left... More>>

ALSO:

General Election NZ: National Win

Election Night: With almost all votes counted National and John Key have won a third term and are close to being able to govern alone if they so choose. Key has indicated he will still reach out to form a Government with ACT, United Future and Maori Party. More>>

ALSO:

Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news