Hon Maryan Street
Minister for Housing

Report shows progress on housing plans for future

A report examining the drivers of house price rises and potential policy solutions, and papers outlining progress on the government's housing affordability plan for the future, were released today said Housing Minister Maryan Street.

The Final Report of the House Prices Unit: House Price Increases and Housing in New Zealand was today posted on the website of the Department of Prime Minister and Cabinet (DPMC). The unit has been co-ordinating a multi-agency research report examining the causes of house price increases.

"It examines how these have impacted on home ownership levels, the rental market, and the vision of the New Zealand Housing Strategy 'that all New Zealanders have access to affordable, sustainable, good quality housing appropriate to their needs," Maryan Street said.

"The unit was also asked to identify options to address growing concern about housing affordability. The report reveals that a complex number of factors has influenced house price rises, identifies areas requiring further work, and highlights the careful balancing act required in developing policy solutions."

"I have also released a Cabinet paper on the government's policy response, based on the advice received. The minute of a subsequent Cabinet paper detailing sped-up time frames is also being released."

"The comprehensiveness of the report and the speed with which the government is working to give effect to the solutions demonstrates its commitment to a plan for housing affordability for the future," Maryan Street said.

"We have a range of initiatives to increase the number of affordable homes being built for first home buyers. The role of the not-for-profit sector in increasing the amount of affordable owner-occupied and rental homes available is also under investigation."

"While modest falls in house prices are likely in coming months, no one is predicting a return to 2002 levels which were 80 per cent lower than today. If we want to arrest declining home ownership rates, we need pro-active policy."

ENDS

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