Ballot system temporary, Twyford says
WELLINGTON: Housing Minister Phil Twyford has been forced to describe the KiwiBuild ballot system as a ‘‘temporary measure’’, after it was revealed only half the houses on offer have sold.
By the end of 2018, KiwiBuild had offered 96 homes through its ballot system but only 48 have been sold.
All of the remaining 48 homes are now potentially up for direct sale, after just six months of the Kiwibuild programme being operational.
The 50% ballot sale rate undermines the Government’s own May 2018
Cabinet paper, which estimates ‘‘balloting will be the most frequently used sales method in the first few years of the KiwiBuild programme’’.
The Cabinet paper adds ‘‘in some cases’’ developers may skip the ballot system and ‘‘move immediately to direct sales’’.
Yesterday, Mr Twyford insisted ‘‘direct sales have always been an option’’.
‘‘We have always said the ballot would be a temporary measure for areas where there was high demand for KiwiBuild homes.’’
A KiwiBuild spokesman also added it would be ‘‘incorrect’’ to say none of the 48 remaining KiwiBuild homes will be sold through the ballot.
He said the latest ballots in the closing weeks of 2018, for 15 built homes, could still end up as completed ballot sales.
No direct sales for the homes that have been passed over at ballot have been completed yet, either.
The KiwiBuild spokesman said estate agents had reported ‘‘good interest’’ in them.
The 50% ballot sale rate comes as Mr Twyford this week conceded he could not guarantee meeting the target of 1000 KiwiBuild homes fully built by July 2019.
‘‘I think it’s going to be tough to meet that target,’’ he said.
Prime Minister Jacinda Ardern this week, too, downplayed the news the 1000home target would not be met.
‘‘We set some goals around KiwiBuild and even if we’re falling shy of those, we are still building affordable houses, just not as fast as we want and as many as what we want as quickly as we want,’’ Ms Ardern said.
National housing spokeswoman Judith Collins said Mr Twyford has changed his tune on the integral role the ballot system would play when KiwiBuild was launched in mid2018.
‘‘Labour campaigned on KiwiBuild running a ballot system to ‘ensure everyone is treated fairly’ as there would be ‘significant demand for KiwiBuild homes, particularly in the first few years of the programme’. How wrong they were.
‘‘Mr Twyford has given up on his KiwiBuild ballot and is instead letting the private sector sell his houses, who are much better placed to as well.’’
Of the KiwiBuild homes sold last year, 20 were completed homes and 28 were homes off the plans.
By the end of 2018, there were only 33 actual KiwiBuild homes built in total, and 63 offered off the plans.
The Ministry of Housing says the first KiwiBuild ballot of 2019 will be opening soon, and it was set to announce more homes offered for direct sale ‘‘shortly’’. — NZME