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First Home Grants An Admission Of Failure

“The Budget increase to the First Home Grants and First Home Loans is an admission that this Government has pushed up house prices and they’re now pouring more fuel on the fire,” says ACT Deputy Leader and Housing spokesperson Brooke van Velden.

“The Government has relentlessly borrowed and spent and pushed up the price of everything. The Reserve Bank added fuel to the fire by printing $60 billion. That cash has sent house prices through the roof.

“The Government hasn’t finished increasing the cost of living for New Zealanders. Now the Government is pumping an extra $148 million into an already inflated housing market.

“In 2019, Treasury warned that homeownership assistance without dealing with supply could increase house prices. “Financial support is likely to increase prices when supply is constrained.”

“This is especially true now that the maximum house price to be eligible in Auckland for the grant no longer distinguishes between old and new housing, removing any incentive to grow supply.

“Today’s announcement is nothing more than an admission of failure from the people who brought you KiwiBuild.”

© Scoop Media

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