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


LGNZ encourages strategic thinking on housing affordability

LGNZ encourages strategic thinking on housing affordability

Local Government New Zealand (LGNZ) sees a strong need for central government, local government and the private sector to work together strategically to address housing affordability.

At an LGNZ Major Issues Seminar in Wellington tonight, LGNZ President Lawrence Yule will lead a panel discussion on housing affordability with Finance Minister the Hon Bill English, Auckland Council Deputy Mayor Penny Hulse, Economist Arthur Grimes and New Zealand Council for Infrastructure Development Chairman John Rae.

Homes in New Zealand are the second-most expensive in the developed world, based on the ratio of price-to-income, and the most-overvalued relative to rents according to a new Organisation for Economic Co-operation and Development report.

“There are many factors influencing housing affordability including financial instruments, banking policy, the costs of construction, our desire for big houses, supply of land and housing and consenting costs. The areas local government can influence – zoning land for development, setting rules for density, building and resource consenting, and provision of infrastructure – are just a small part of a wider and more complex picture,” says LGNZ President Lawrence Yule.

According to the 2012 Productivity Commission report on housing affordability, the cost of building materials is overheated and makes a significant contribution to the cost of a house. Some of the tools to deal with this, such as higher loan to value ratio requirements, are blunt and could potentially create problems in parts of New Zealand where affordability is not a pressing issue.

“In most parts of New Zealand there is no shortage of land zoned for housing, and councils in areas with shortages such as Auckland and Christchurch have made good inroads on zoning and consenting despite facing significant growth and challenges,” says Mr Yule.

Many councils have introduced efficiencies such as online systems to speed up consenting. The future development of a national online consenting system could offer further benefits and LGNZ is working with the Ministry of Business, Innovation and Employment to develop this concept.

LGNZ also considers a number of factors could be looked at to improve incentives, including a more appropriate allocation of risk sharing for councils through a review of current joint and several liability arrangements.

“However, in many parts of New Zealand affordable housing is less of an issue. We see a real opportunity to leverage off this and develop a shared strategy to strengthen regional economies to make other areas in New Zealand attractive places to live.”

“While our largest cities will always have affordability issues for many, local government, central government and private companies all need to work together to address the multi-faceted aspects influencing housing affordability because New Zealand communities need access to homes within their budgets,” Mr Yule says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Gordon Campbell: On Putin’s Diplomatic Coup Over Syria

    There’s a simple historical precedent for what is occurring in Syria. During WWII, the Allies joined forces with a known butcher and tyrant – Joseph Stalin of the Soviet Union – in order to defeat a greater evil, Nazi Germany… More>>


    Key 'Didn't Know': Brownlee Seeks Pandas In China

    While Defence Minister Gerry Brownlee is in China pushing a taxpayer funded deal to bring two pandas to New Zealand, the country’s military look set to be hit with a pay freeze, Opposition Leader Andrew Little says. More>>


    Scoop Business: GCSB Willing To Extend Cyber-Attack Programme To Local ISPs

    The Government Communications Security Bureau’s ‘Cortex’ cyber-security programme has been successful in helping identify and mitigate a series of cyber attacks since its introduction and an extension to cover local internet service providers is still on the cards... More>>


    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news