Government’s latest plan ‘won’t fix crisis’

Boosting public housing stock might address the growing numbers on the waitlist but it won’t ‘‘fix’’ the housing crisis, experts warn.

The Government has unveiled where it plans to build the 8000 new public and transitional homes it promised in the last Budget with the release of its public housing plan yesterday.

With a record high of nearly 22,500 eligible households on the waitlist for public housing, alongside rising house prices and rents, the Government is under pressure to address the housing crisis.

The Government wants to deliver an extra 18,000 public and emergency housing units by 2024, which would bring the total number of public houses to 81,300 and emergency units to 6641.

While the Government’s announcement was welcomed as a necessary move, many felt it did not address the broader problems plaguing the housing market.

Property commentator Ashley Church said the housing crisis was usually defined in two ways – one being housing affordability and the other a shortage of housing supply. The Government had now added public housing into the mix and, given the exploding wait list and the failure of KiwiBuild, that seemed reasonable, he said.

‘‘But it won’t help with the affordability of the housing market generally. You need to build more properties for people to buy to do that.’’

National Party housing spokeswoman Nicola Willis said the plan fell well short of fixing the housing emergency, with growing numbers of people being priced out of the private market as rents surged and house construction failed to keep up with demand. ‘‘For many Kiwis, joining the queue at MSD to apply

Ashley Church

for emergency housing isn’t the answer they’re looking for.

‘‘We need to drastically increase our housing stock by making it easier for everyone to build houses in this country, not just the Government.’’

For Willis, the number one solution to fixing the housing emergency would be the repeal and replacement of the Resource Management Act (RMA).

Property experts have long said the best way to address the housing crisis is by increasing the housing supply of all types and making it easier to build.

Real Estate Institute chief executive Bindi Norwell welcomed the Government’s announcement as showing progress in an area that needed to be urgently addressed.

But the institute would welcome further announcements from the Government addressing the wider housing supply and RMA reforms so building could start at speed and scale, she said.

‘‘You need to build more properties for people to buy . . .’’