The Taxpayers’ Union is welcoming the National Party’s housing policy to force councils to reduce the regulatory constraints on land supply, but has concerns about the blank cheque approach to giving councils even more money.

“The biggest constraint to affordable housing is inflated land costs,” says Jordan Williams, a spokesman for the Taxpayers’ Union. “Forcing councils to address that is a good first step - and is certainly better than the Government’s plan: hiking the tax burden on housing investment.”

“But, like the Government, National is falling into the trap of thinking local councils are short of money. The fact is, despite doubling in size over the last 20-years, councils are putting a much smaller proportion of their income back into capital investment. Throwing money at a sector that is bloated and wasteful, without requiring the money to be spent on roads and pipes, may just make the problem worse.”
 

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