$5 billion house-building effort

The Government is promising to double its state house-building efforts, with 8000 new homes pledged.

The $5 billion house-building effort is expected to roll out over the next five years, and $570million in rent subsidies — used to fund the building or acquisition of state homes.

Housing and infrastructure loomed large in the spending announced by the Government yesterday. On top of the thousands of state homes promised, there was $56m for insulating 9000 old homes, and a $3b boost for infrastructure projects.

Housing Minister Megan Woods said the $5b spend would be significant for the construction sector, and send companies a ‘‘strong signal’’ that they should retain their staff. ‘‘Building, and providing more warm, dry and secure housing will go a long way to creating a better, fairer society for all of our people as well as helping to rebuild our economy.’’

The Government would allow Ka¯inga Ora to increase its borrowing by approximately $5b over the next five years to fund its portion of building programme.

The income-related rent subsidy, a total $570m in the Budget, is spent on subsidising rentsmanaged through Ka¯inga Ora and community housing providers — essentially the Government buying tenancies from these providers.

Woods said of the 8000 homes, there would be 6000 public houses and 2000 would be transitional homes, which are used to urgently house the homeless.

The Government has already promised to build 6400 homes, which are either ‘‘in the pipeline’’ or constructed, and another 1000 transitional homes on top of that.

The $56m for insulating homes would be funnelled through the Warmer Kiwi Homes programme, but the 67 per cent subsidy for retrofitting insulation would increase to 90 per cent.