Poverty Trap Snares Would-Be Home Owners
Baptist City Mission
While paying 60% of their income on
rent, many low income families
are being refused
mortgages because banks will not let them pay
more than
about 25% of income to buy a house, says Baptist
Action's
City Mission manager Gary Corbett.
"That's
what we mean by the poverty trap. We're pleased
that
Housing New Zealand properties are available to
tenants but the
reality is, many can't do it," he
said.
Mr Corbett was commenting on Housing New Zealand
Minister Tony
Ryall's comments on increased house sales
to low income HNZ tenants,
particularly in Auckland,
under the Home Buy scheme.
"We know of families in Orakei
whose HNZ rent has increased so
much, in line with the
market rents policy, that they're forced
to move out of
the community they've been a part of for decades,"
added
Mr Corbett.
"These houses are on valuable land which is
being sold to developers
once the low income tenants have
been forced out."
Mr Corbett added that it wasn't unusual
for some low income families
to pay up to 80% of income
on rent.
The Baptist City Mission provides budgeting
management services
to 170 low income and food parcels to
150 people a
week.