KiwiSaver house subsidy stats climb

THE number of first-home buyers accessing a KiwiSaver HomeStart grant has surged to almost 6300.

Building and Housing Minister Nick Smith said the figures confirmed the Government was on track to help 90,000 people into homes over the next five years at a cost of $435 million.

But Labour spokesman Phil Twyford said officials had warned the policy would drive up house prices by stoking demand.

‘‘The average Auckland house went up more in the last month than the total Home Start subsidy available for couples. How on earth can firsthome buyers keep up with that?’’

Smith said the number of subsidies – up to $10,000 for a couple buying an existing home and $20,000 for a new build – had risen from 2011 in the three months to June to 4261 in the September quarter.

The Welcome Home Loans scheme – which allows buyers only a 10 per deposit – saw 572 new approvals in the last three months.

Meanwhile, the Government announced yesterday the creation of another nine special housing areas (SHAs) in Auckland, where housing consents can be fasttracked, with the potential for 11,000 new homes.

The prime minister said it took to 106 the number of SHAs in Auckland, with potential for 48,000 new homes.

John Key said the Government supported ‘‘for the most part’’ moves by the Auckland Council to change zoning rules allowing denser housing.

‘‘It’s clear for everyone to see that the city needs to go out and it needs to go up,’’ he said. ‘‘It depends on what they’re building and where.’’ The CBD rail tunnel would allow greater density in the CBD, where it was much less controversial, but in the socalled ‘‘leafy suburbs’’ such as Remuera, there was already a lot of apartment building and Parnell was already one of the densest suburbs in Auckland.

Smith said there was still a lot of work to convert SHAs into completed houses. ‘‘But Aucklanders should be encouraged by the fact residential construction in the city is booming. . . . with the rate of new house build at a 10-year high.’’

But Twyford said Smith was clutching at straws. ‘‘The housing minister trumpets nine more Special Housing Areas, taking the total to 106. But the council can only account for 102 houses built in the SHAs in the past two years.’’

The consenting rate was still 4300, below the 13,000 new homes Auckland needed every year to keep up with population growth.

Nick Smith