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Auckland Council responsible for the housing crisis

2 August, 2013

Auckland Council responsible for the housing crisis and job losses in Auckland

With the release of his housing policy today, Auckland Mayoral candidate John Palino says that Auckland Council decisions are responsible for increasing the volatility and vulnerability of the region’s house prices.

“For three years the Auckland Council has watched as Auckland’s housing problem has turned into a crisis.

It became clear over two years ago with the release of draft findings from the Productivity Commission that Council policy was negatively impacting housing affordability, but to date there has been no action.

The Council has not only resisted the Commission’s findings, but also has ignored signals from the Reserve Bank that house prices in Auckland threaten the stability of the New Zealand financial system. It now appears likely that the Reserve Bank will increase the size of deposits, making it harder for Aucklanders to buy a home.

The housing problem has become so bad over the last year that the Government has been forced to intervene through the Housing Accord it hopes to sign with Council.

Again, however, the Council is stalling while many Aucklanders continue to live in cramped, damp houses, are faced with longer waits before owning their own home and are having to take out much higher loans to buy overpriced property with long term risk of price volatility.

The Council is not just failing to grasp the size of the problem, it’s failing to realise the scale of the opportunity.

We’re missing a huge chance right now to drive jobs and growth in some of our more deprived areas through construction and new building development.

We must start viewing housing as part of a wider system which affects our health, accessibility, the national economy and the environment. There are areas in Auckland with low public opposition, infrastructure capacity and commercial demand for housing where work can start right away – if the Council works with the Government and modernises its policy,” says Palino.



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