A drop in the number of new building consents has blown a hole in the Government’s housing policy, Labour Leader David Cunliffe says.
Statistics out today show the seasonally adjusted number of new dwellings, excluding apartments, fell by 2.3 per cent in October.
“Just this week we had the Registered Master Builders Federation warning LVR lending restrictions were jeopardising thousands of new builds. Today we have confirmation.
“John Key indicated late last month that the Government was tracking consents week by week and said numbers were actually increasing in Auckland. He was wrong.
“We have already seen first home buyers locked out of the Kiwi dream. Now we are seeing the Government and the Reserve Bank pulling in opposite directions.
“The Reserve Bank can’t be blamed for being concerned about financial stability. It has been pushed into a corner by National’s failure to get a grip on the housing crisis.
“Increasing the supply of affordable homes is vital.
“John Key and his Government didn’t think through the implications of LVRs. Now they should take responsibility for the collateral damage: First home buyers and a drop in building consent numbers.”