Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

UnitedFuture releases Rent-To-Own Policy for Housing


7 June 2017

UnitedFuture releases Rent-To-Own Policy for Housing

UnitedFuture has announced a new rent-to-own policy for housing to deliver housing to a generation of New Zealander’s currently locked out of the housing market says UnitedFuture leader, Hon Peter Dunne.

“UnitedFuture is advocating for opening an additional avenue for home ownership that targets those who are currently locked out of a market that is seeing too few young families able to achieve the security of home ownership.

“Our plan is simple. We would allocate half of the affordable houses being constructed under the Government’s building programme in Auckland to be included in a new rent-to-own scheme that would provide a new opportunity to people who have difficulty in meeting the financial requirements around buying a house.

“We would offer these houses as rental properties that people could lease, provided they lived in that property and pay market rent,” said Mr Dunne.


The Rent-To-Own Policy:

• Of the 20,600 homes the Government has announced to be built in Auckland as affordable homes, half of them would be offered as rental properties under this scheme.
• A portion of that rent would be paid to the Government as rent that will cover fixed costs (such as rates) and deliver some income to the Government.
• The balance of the rent will then count towards purchasing a share of ownership in the house in question. This means that the payments act as mortgage payments and give tenants a pathway towards owning an increasing share of a property.
• At the time a tenant owns enough of the property to count as a deposit, they will be offered title to the property. They will then need to find appropriate financing for the property (a bank mortgage for example).

Mr Dunne said that this policy was aimed at people who were currently shut out of the market by prohibitive deposit requirements.

“A generation of New Zealanders are facing the prospect of home rental for the rest of their live and this policy would put them on a pathway towards home ownership.

“The rent people pay would be accumulated as savings earmarked for a home deposit. There is not that much difference in principle between this policy and the Government’s plan to build affordable houses to sell. What we are changing is the way they are sold and who they are sold to; we want to see specific targeting of people who are struggling to save for a deposit and pay their rent at the same time.

“This is a first step in opening up new avenues for housing affordability. I would hope that it could be expanded into other centres where Central and Local Governments have accommodation building programmes and indeed be used as a template for private housing developers, who would benefit from the ongoing and secure stream of revenue this policy would provide,” Mr Dunne said.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Coronavirus: On The Addiction To Chinese Student Fees, And A Possible Future For RNZ Concert

Last week, Australian PM Scott Morrison extended its ban on foreign visitors from or passing through from mainland China – including Chinese students - for a third week. New Zealand has dutifully followed suit, with our travel ban extending until next Monday at least, presumably dependent to some extent on what Morrison decides to do later this week.
Our universities are now asking for an exemption to the travel ban for their Chinese students, who would still, the universities assure us, be subjected to strict quarantine procedures upon arrival. Given how the inability of the university system to care for its own students on campus made world news last year, that promise may not do much to reduce the coronavirus fears among the wider New Zealand public. More>>


 

Water Woes: Wellington Reflects National Problem

Water utilities right across the country face major challenges to upgrade and maintain their underground three waters network. Water New Zealand’s Technical Manager, Noel Roberts says Wellington’s waste water woes are not unique to the capital city. ... More>>

ALSO:

2020 And Beyond: National’s Economic Plan

National Leader Simon Bridges has today outlined National’s economic plan heading into election 2020. “National understands the economy and how it impacts on New Zealanders day to day lives... More>>

ALSO:

Abortion Legislation Committee: Abortion Bill Report Presented To The House

The Abortion Legislation Committee has presented its report on the Abortion Legislation Bill to the House. A copy of the report is available here. The bill seeks to have abortion services provided like other health services... More>>

ALSO:


Local Government NZ: New Report A Pathfinder For Affordable Housing

A report released today by LGNZ provides a roadmap for councils finding their way through the complex policy, regulatory and market tools available to help enable more affordable housing developments for New Zealanders. With demand soaring, rents ... More>>

ALSO:

“Can Do Better”: Sallies Election Year Report Card

This year’s State of the Nation report by The Salvation Army offers a mixed bag of outcomes, with some significant headline progress - but also an ambitious list of “can do better”. Government action is delivering limited improvements... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels