Headline: Govt housing policy creates generation of renters
National’s housing policy is in tatters and has forced the Reserve Bank to use LVRs, that include first home buyers – a move that is locking thousands of Kiwi families out of the dream of owning a home, Labour’s Finance spokesperson David Parker and Housing spokesperson Phil Twyford said.
“The Government has no idea how to fix the housing problem. They thought LVRs would be a silver bullet but didn’t realise the impacts on first home buyers until it was far too late,” said Phil Twyford.
“Now thousands of Kiwis face being locked out of home ownership for years to come. Many will have to find an extra $50 000 to reach a deposit. No wonder 80 per cent of first home buyers say they will not be able to afford a home.
“The twin drivers of skyrocketing house prices are rampant speculation and the shortage of affordable housing but National refuses to deal with them. Of course LVRs will help reduce demand but the cost of the Government’s inaction is creating a generation of renters,” says Phil Twyford.
“John Key has failed abjectly to tackle housing affordability. Instead he’s outsourced it to the Reserve Bank. It’s not the Reserve Bank’s role to fix housing, it’s the Government’s,” says David Parker.
“National has forced the Reserve Bank into a corner by refusing to deal with the shortage of affordable homes and rampant speculation which are driving up house prices. When first home buyers say they can’t afford a house, John Key can’t point the finger at the Reserve Bank.
“Labour has a plan for housing and will deal with supply and demand. By building 100,000 affordable new homes in 10 years with KiwiBuild and clamping down on speculators we will tame rampant house prices and keep the home ownership dream alive,” said David Parker.
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