Solution to rent rises lies in building houses and stopping speculators – Labour Party

By   /   August 11, 2017  /   7 Comments

The spread of rental increases from the big cities to the surrounding regions shows why we need to get on top of the housing shortage build homes our families can afford, and lock out the speculators, says Labour’s Housing spokesperson Phil Twyford.

 

“The latest figures from MBIE show that, since National came to power, rents are up 37 per cent, far ahead of wages. Auckland, Tauranga and Queenstown have now seen average rents increase over $150 a week since 2008.

 

“Rents are up six per cent nationwide in the past year. Places like Kapiti, South Wairarapa, Hurunui, and Carterton saw increases of over $50 per week in the past year, showing the pressure of the housing shortage in the cities is forcing up rentals further and further out.

 

“The same lack of housing that is forcing up rents is forcing families into cars and garages, and on to the streets.

 

“We need more positive action on housing. National simply has not fixed the problem.

 

“Labour will build affordable starter homes and sell them to first home buyers at cost. At the same time, we’ll close down the speculators’ tax loophole and ban overseas speculators from buying existing houses. And, we’ll require all rentals to be warm, dry, and healthy to live in.

 

“Labour’s positive plan will deliver quality, affordable homes to our families, stabilise rents, and a fair shot at owning a place of your own,” says Phil Twyford.

 

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7 Comments

  1. Observer Tokoroa says:

    TO: Phil Twyford

    Thank you for presenting Labour’s much needed Housing / Renting policy.

    National and its Supporters through the Prime Minister and the Deputy Prime Minister, has repeatedly denied there is an infra structure need or a housing crisis in New Zealand.

    In fact, English and Bennett have been selling off State Houses to speculators here and overseas with gleeful abandon. Living the life of Riley as they do, they have dropped the reigns.

    To put immigrants and Foreign investors ahead of New zealanders is treason and it will push the entire National Party into oblivion.

    It will take years to fix the problems of ordinary Kiwis. That alone, will ensure that the National Party will slip into the dust bin of political history. Our Polluted streams and rivers will take years to fix too.

    Clinging to foreigners and immigrants and seeking donations from them will not save English, Bennett or Collins.

    National has fouled its own nest – forever. Corrupt. Worthless. Cruel. Sadistic.

  2. The Chairman says:

    Labour’s so called affordable homes will range in price from around $500,000 to $600,000 in Auckland. 

    Banning overseas investors from buying existing houses overlooks the extra demand pressure it will place on land coupled with the inflationary impact it would have on nearby surrounding areas. As the demand (thus value of land increases) it will add to the overall value (hence purchasing cost) of surrounding homes.

    Requiring all rentals to be warm, dry, and healthy to live in while the market is overheated allows more scope for those costs to be passed on. Resulting in further driving up rents.

    Therefore, it’s difficult to see how this policy will stabilise rents and soaring housing costs.

    Care to explain, Phil?

    • Sam Sam says:

      Something that is often missing from the housing debate is architecture. Subdivisions pop up ten stories high with stupid ideas of socialised food (socialism for you, eat out for me. So no cafes ect) in reality Auckland is an ugly city. When we build it kind of has to fit with the enviroemnt. Close to schools, public transport, parks. And wifi kills all this activity that pushes up prices in the first place, by taking away users free time. So Auckland property is over value of you consider the leisure activities that made New Zealand desirable barley even feature in recent developments.

      So there are very strong forces in the industry, with in New Zealand and abroad and it will take strong leadership, stronger than what’s being displayed by the current government. To mitigate all this because the soft landing of gradually declining house prices dosnt exist. Every other housing collapse are dramatic and every one gets screwed over. Unfortunately one guy can’t change that. Takes a team/national effort because some times the decline of civilisation can be so slow that by the time it becomes obvious its to late to reverse course and this is where we are now.

  3. Observer Tokoroa says:

    Good Chairman – who told you that houses will cost those amounts ?

    What inflationary impact ?

    What land will increase in price ?

    Have the voices been speaking to you in your head chairman ….

    If we build lots of homes the current artificial value of land and homes will go down and down and down. As you well know – silly chairman

    Ordinary Kiwis will be able to afford them. Do you understand. ?

    • The Chairman says:

      “Who told you that houses will cost those amounts?”

      It’s stated on Labour’s own website: http://www.labour.org.nz/kiwibuild

      “What inflationary impact?”

      The inflationary impact created by the additional demand for land after shifting offshore demand from existing houses to new builds.

      “What land will increase in price?“

      Land sought to house new builds with the flow-on effect driving up land values in nearby surrounding areas.

      I have no problem with the rationale that exceeding demand and building more homes will help lower costs overtime, hence I never raised it.

      However, we currently have a housing shortage, thus one would expect more to be done on the demand side as time is of the essence. Thus, merely shifting offshore demand to new builds vastly falls short.

      Additionally, to help expedite a fall in rents, far more state rentals are required than what Labour are currently offering to build.

  4. Michal says:

    WE NEED TO HAVE CAPITAL GAINS TAX GET ON WITH IT!

  5. Not a Robot says:

    A Comprehensive Program to Turn Around the Housing Crisis in New Zealand;
    0. Government “Manhattan Project” to provide housing by fast-tracking industrial-scale construction processes, training of WINZ beneficiaries in construction, as well as Government Supplier of quality building materials at cost, and other interventions.
    1. No foreign ownership of existing homes – new builds only.
    2. WOFs on all rental housing.
    3. No evictions without cause (non-payment of rent or damage *only*).
    4. Rental increases limited to inflation rate, with exemptions for tenants who have not had equivalent pay increases.
    5. Land Tax applied to all commercial and residential rental properties, progressively increasing with the number of properties owned.
    6. Unoccupied residential properties pay double Land Tax.
    7. 100% GST Rebate on first sale of new apartments meeting certain standards (> 60 square meters, balconies, thermal/sound insulation and other standards).
    8. Reduce net immigration to 2007 levels.