Headline: FirstHome well-intentioned but poorly thought-out
After five years in denial, FirstHome is at least an attempt to help young families buy their first home but it’s selling houses that the government can’t spare and using an expensive, poorly-targeted subsidy.
It is good to see the National Government acknowledging the need to help families into affordable housing but its FirstHome policy is poorly thought-out, Green Party Co-leader Metiria Turei said today.
Housing Minister Nick Smith has today announced a policy to let below average income families buy state houses in provincial towns and receive up to $20,000 from the Government as a deposit subsidy. National plans to sell 500 houses, at a cost of $6 million. Housing New Zealand statistics show there are currently 58 families on the waiting list for a state house in the Nelson/Blenheim/West Coast area, where Minister Smith made his announcement at a ‘surplus’ state house.
“National’s taken a small first step toward a workable affordable housing policy but it’s got the wrong approach,” said Mrs Turei.
“After five years in denial, FirstHome is at least an attempt to help young families buy their first home but it’s selling houses that the government can’t spare and using an expensive, poorly-targeted subsidy.
“The Greens dispute National’s argument that there are ‘surplus’ state houses to be sold. Every region of New Zealand has families on the waiting list for a state house. In the region where Dr Smith made his announcement, 58 families are waiting for a state house. Those families should be the priority for vacant state houses like the ones Dr Smith plans to sell.
“A successful home affordability initiative needs to be linked to a government-led programme of affordable house-building, so that there are state houses for those in need and affordable homes for young families to buy.
“We examined deposit subsidies when building our Home for Life package but found that they are very expensive and help a relatively small number of people into homeownership. National’s scheme would cost the taxpayer $6 million to help just 500 families. That’s a poor use of public money.
“It’s far more cost-effective to leverage the Crown’s low cost of capital, as past governments did with State Advances and as the Greens propose with Progressive Ownership. That approach doesn’t cost the Crown, because the homebuyers cover its cost of borrowing, and it gives thousands of families an affordable path to homeownership.
“Credit where it’s due to National for finally admitting that Government leadership is needed to help young families into their first home, but their idea needs a lot of work to be affordable and to really deliver for Kiwis,” said Mrs Turei.
Additional information:
Green Party Home for Life package including Progressive Ownership
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