Housing simply has to be Government's top priority
Backwards vision the way forward as rent-to-buy state homes appeal as an answer
National will rebuild into a formidable
force in the coming three years, especially if Labour rolls over on the wealth tax and starts taxing capital gains
on residential property.
Many of us are watching that sad bunfight on the other side of the Pacific and counting our blessings that our electoral system, for all its warts and faults, works as it should.
Weare also thankful that a stable centre-left government has resumed its seat on the Treasury benches, able to rule alone with a healthy majority for the next three years if Prime Minister Jacinda Ardern wishes.
Ardern, being the sharp pragmatist and great communicator that she is, extended an invitation to the Greens whenshe did not have to. Avery smart move.
She would also be wise to offersome kindness to thema¯ori Partymembersupontheir return to Parliament. Three years is but a flicker in time and she could need these two parties in 2023.
Let’s face it, Labourwonand National lost for two very good reasons: Covid-19 and the Government’s sterling work in combatting its spread innew Zealand, together with National falling to bits internally.
National will rebuild into a formidable force in the coming three years, especially if Labour rolls over on the wealth tax and starts taxing capital gains on residential property.
Those soft centre voterswho voted Labour but normally favour National will return to the fold in 2023 if Ardern caves on tax.
Judith Collins, a polarising figure, could be gone by then, replaced by amore palatable choice for the centre-right.
Ardernknowsthis, as do the clever strategy wonksin the National Party.
Ardern says she intends to govern for allnewzealanders. This is a kind and aspirational soundbite but is it realistic, with house prices so highnow?
Especially in the main centres where young first-home buyers, even with the bank of Mumand Dad, will find it difficult to impossible to scrape together a deposit, let alone ask for a mortgage that will need to be five ormoretimes their joint income. Interest rates are low butmaynot stay thatwayforever.
Young couples from the working end of town or from families with low incomes have no chance of owning theirownhomein this current climate, unless they all shift to the West Coast. Even that area is nowbecoming a stretch.
Ardern simply condemning rising house prices is not going to makethem stabilise orcomedown anytime soon. Her government, if it is truly for all Kiwis and truly wants to be transformational, needs to take a page out of the first Labour Government’s song book andmake housing allnewzealanderswho want theirownhomea simple priority, getting them awayfrom the usurious grip of landlords.
Whatis wrong with the state being the biggest landlord in the country but with a rent-to-buy scheme similar to the scheme introduced by National in 1950?
That enabled hundreds of thousands of working and low incomenewzealanders tobecome house-owners overnight at the flourish of a pen.
If a family wasrenting a State Advances property, they were offered the option of buying it and continuing to pay the rent, which in reality was amortgage payment, and the house becametheirs.
That ishowthe working middleclass emerged innewzealand, eventually bequeathing that wealth to their children and makinghome purchases, while always a challenge, achievable for baby boomers and their children.
Allnewzealanders dream of theirownhome. It is in ourdna harking back to the early days of this nation wheremanysettlers from severely disadvantaged backgrounds in the Old World were able to dream and plan for theirown home.
Labournowhas the chance and all the power it needs to reallymake adifference to the lives of all young Newzealanderswhowant to fulfil that dream, not just the kidswho have the advantage of family help orwhocomefrom the very wellheeled suburbs.
Labour should not worry about the envy and anger of the far left towards peoplewhohave money.
Anyamount taxed would be small but it will, without doubt, cost Labour the next election. Better to let that go and concentrate on housing that is accessible and affordable to people starting out.
If they do adecent job of it, build thousands of decent basic homes, they will be rewarded as the first Labour government was, with several terms in power.
The far left will always want to be in power and will be there to be courted by Labourwhenthe time comes.
If Labour puts together adecent rent-to-buy state-run scheme for housing, they will be thanked by a lot of people currently either sitting in rentals or having to live with family— but all dreaming thatnew Zealand dream.