Headline: Green policies will tackle National’s housing bubble
National has stood by while the housing bubble re-inflated. The result is more highly indebted households, a more highly indebted country, an over-valued currency hurting jobs, and a generation locked out of home ownership
New figures confirm that the housing bubble is re-inflating and none of National’s ‘solutions’ will control it. What’s needed are Green Party policies to make affordable housing a reality, Green Party housing spokesperson Holly Walker said today.
Figures released by REINZ show the national median price went up 6.25 percent in May compared with May last year. In Auckland, 70 percent of the median income is needed to service the mortgage on a house priced in the lowest quartile.
“House prices are at record highs and the National’s Government’s response – to push through new special housing areas in Auckland and elsewhere – won’t do anything to increase the supply of affordable housing,” said Ms Walker.
“National has stood by while the housing bubble re-inflated. The result is more highly indebted households, a more highly indebted country, an over-valued currency hurting jobs, and a generation locked out of home ownership.
“There is an urgent need to increase the supply of affordable housing, especially in Auckland, to address the crisis. However almost every submitter to the Housing Accords and Special Housing Areas Bill has agreed that the approach of fast-tracking new special housing areas won’t do anything to increase the supply of affordable housing.
“The new zones won’t even require that a certain percentage of the houses built will be affordable. Housing Minister Nick Smith has made it clear that building more affordable homes isn’t a goal of the current government.
“We need the Government to take the lead in building new homes that are affordable, and provide families a pathway to own those homes with a Progressive Ownership scheme that would allow them to rent to buy. We also need a capital gains tax (excluding the family home) to drive speculators out of the housing market and give young families a fair shot.
“Solutions to the housing crisis should be aimed at those in the most need right now, not the upper end of the market and the profits of developers,” said Ms Walker.
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