English blames banks, buck stops with him

Source: Labour Party – Press Release/Statement:

Headline: English blames banks, buck stops with him

The Kiwis who have lost their pre-approved home loans with ASB should save their anger for Bill English, rather than blame the bank which is implementing government policy, as Mr English has done, said Labour’s Housing spokesperson Phil Twyford and Finance spokesperson David Parker.

“ASB’s decision to scrap its pre-approved loans is gut-wrenching for so many first home buyers. But it’s not ASB, nor even the Reserve Bank that’s to blame. It’s Bill English, whose failure to deal with the housing crisis is destroying the Kiwi dream of home-ownership,” said Phil Twyford

“Seventy per cent of first home buyers save a deposit of less than 20 per cent to get a mortgage. Most of those will now be shut out of the market or need to save for years to come,” said Phil Twyford.

“The Government’s failure to rein in skyrocketing house prices has forced the Reserve Bank into a corner and first home buyers will be the ones carrying the can. The Government is doing nothing to address the key drivers – rampant property speculation and the shortage of affordable homes,” said David Parker

“National’s has mishandled LVRs. They brought it in without considering the consequences for first home buyers. They panicked after they signed the deal with the Reserve Bank. Then John Key and Bill English begged the banks to protect first home buyers.

“Instead of listening to Bill English and John Key, banks have cancelled pre-approvals and raised interest rates.

“Everyone except National saw this coming. National’s incompetent handling of housing and LVRs has effectively shut first home buyers out of the market.

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“For the Finance minister to publically attack a major bank for following the rules is a desperate attempt to shift the blame. The buck stops with Bill English and John Key,” said David Parker.

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