KiwiBuild plan gets major rebuild
Collins accuses the Govt of massive retreat from ‘flashy promises’
Housing Minister Megan Woods says committing to specific KiwiBuild targets was a mistake and the Government should not have wedded itself to the 100,000 KiwiBuild home target.
But she is confident that the reset KiwiBuild policy still has what it takes to deliver on the Government’s housing goals.
The 100,000 KiwiBuild homes over 10 years target was axed as part of the reset. This comes just months after the policy’s interim targets, including building 10,000 homes a year, were also scrapped.
Now, the Government has simply committed to building “as many houses as we can, as quickly as we can”. And $400 million has been reallocated from KiwiBuild for a new “progressive homeownership” programme that could support up to 4000 households into home ownership.
The Government has also made it easier for first-home buyers to get Government assistance, by dropping the required deposit for a government-based mortgage from 10 per cent, to 5 per cent.
The new rules also mean that from October 1 this year, family and friends will be able to pool their respective $10,000 First Home Grants and KiwiSaver to buy their first home.
The Government has been praised by some for making it easier for people to get into a first home, but slammed by the Opposition for breaking an election promise.
Woods yesterday told media the Government was “clearing the decks of what hasn’t worked” and that putting specific KiwiBuild targets in place forced the Government to build homes in areas where there was little or no demand.
Many of the KiwiBuild homes that have remained unsold now have to be put back on the market.
The reset has drawn criticism from National’s housing spokeswoman Judith Collins. “It’s pretty easy to achieve targets when there aren’t any, which appears to be the Government’s strategy on housing.”
She accused the Government of massively retreating from the “flashy promises that Labour fooled the public with for so many years”.
Social housing providers are praising the Government’s approach.
“The Government’s new approach
to home ownership is a win for the many thousands of New Zealanders seeking an affordable place to call home,” Community Housing Aotearoa chief executive Scott Figenshow said. He is upbeat about the “progressive homeownership” initiative whereby up to 4000 households would become homeowners, likely through a rent-to-buy or shared equity scheme. The rent-to-buy
scheme has been particularly welcomed by Greens co-leader Marama Davidson.
Davidson described yesterday as one of the best in her political career.
“I want to say to those New Zealanders today who have given up hope on their dream of owning a home that we have opened the door to you.” More details of the rent-toown scheme will be put to Cabinet
later this year. Collins said New Zealanders who dream of home ownership will feel let down by the KiwiBuild reset.
“There were no new initiatives to speed up the delivery of houses. All we got from the new Housing Minister was a commitment to try harder.
“What are prospective first-home buyers supposed to do with that? It’s meant to be KiwiBuild, not KiwiHope.”
Real Estate Institute chief executive Bindi Norwell said the progressive homeownership programme was a good step. “This will significantly help a number of first-home buyers, as saving for that initial deposit was often the biggest hurdle to getting on the property ladder.”