Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Government should address the demand side of housing crisis


MEDIA RELEASE
16 September 2016

Government should address the demand side of our housing crisis

Leading Environmental law firm, Berry Simons, is calling on the Government to consider the need to address housing demand, rather than focusing only on bringing more supply to the market, in its bid to curb Auckland’s severe housing shortage.

Partner Simon Berry says that “we can draw lessons from Canada, where the Government has taken the responsible step of committing funds and resource to investigating the impact of foreign investors on the housing market.”

As a response to burgeoning house prices in Vancouver and Toronto, 90% of which have surpassed C$1 million (The Guardian), British Columbia’s provincial government has imposed an additional 15% tax on foreign purchasers of Vancouver homes. The tax has had an immediate impact in reducing sales to foreign investors.

“We absolutely agree with media reports and widespread experts that ‘limiting demand instead of simply increasing supply’ is a powerful way to create a fairer housing market.”

Berry says media reports suggest the additional tax has resulted in Vancouver’s property market contracting with a reduction in both sales and property prices. He says the same may occur here but, either way, the effect is likely to be short term.

“The current level of demand would appear to be insatiable. In these circumstances, merely increasing supply rather than addressing demand overlooks the basics of Economics 101. This could even make matters worse.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Thus far the Government has only attempted to address supply through the creation of Special Housing Areas via the Housing Accords and Special Housing Areas Act. And that legislation has just been extended for another three years.”

Berry Simons has acted on many of the applications that have already progressed within the 154 SHAs approved to date in Auckland.

“But the question must be asked, who are the houses in these SHAs being sold to? If a significant number are being sold to foreign investors, as seems to clearly be the case, we end up no further ahead.”

Berry Simons strongly believes that if the Government is seriously committed to addressing the Auckland, and spreading, housing crisis, it must consider imposing restrictions on foreign investors to assist dampening demand.

ENDS


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.