Housing investors excluded

A Housing New Zealand-led housing development in Auckland has ensured that homeowners rather than investors get first dibs on its new homes.

Recognising that investors may pick up affordable houses and sell them on quickly for profit, the Mclennan housing project in Takanini will sell only to ‘‘owneroccupiers’’ prepared to live in their home for at least a year.

In a $84 million investment, Housing New Zealand is masterplanning a 24-hectare block of former Defence Force land, laying the foundations for just over 600 terraced and standalone houses over the next three years.

HNZ puts in the infrastructure, gains consent, and sells the sections on to builders, who keep to the plan’s design and ownership covenants.

The first stage of 154 houses is largely sold, and some residents have already started to move in. Work is about to begin on the second stage of 255 houses.

Housing New Zealand senior development manager Giles Tait said buyers were required to sign a form acknowledging they were aware of their obligations and HNZ reserved the right to check up on them.

The ownership covenants were aimed at creating a mixed community of about 2000 people, he said.

‘‘They’re there to ensure we’re encouraging ownership and there’s a desire by the Housing New Zealand board to have an integrated development of social houses and owner-occupiers as opposed to all rental properties.

‘‘And I suppose that builds a stronger community because more people are invested in it; one of the advantages that home ownership brings.’’