After the failure of Kiwibuild to deliver 10,000 houses
per year, the government has announced its latest plan to
solve the housing crisis.
There are many facets that
work together to create the housing crisis we face today.
Price, affordability, demand and supply are all
The latest announcement focuses on attempting
to remove competition by reducing the impact speculators
have in the housing market so first home buyers have more
chances of purchasing. This is still only working within the
current limited housing stock and building
The critical supply issue gets some mention
but no changes. It is expected that investors will invest in
more new houses because they will be exempt from changes to
the bright-line test and interest deductibility policies.
Nothing changes – business as normal for them.
is done to actually build new houses. Part of the solution
would be to select 10 – 20 prefab and factory house
producers and for the government to give them guaranteed
orders for 100 or so houses per year for the next five
years. This would enable them to build up their plant,
systems and people. We would then have a steady supply of
affordable, quality dwellings.
Then we take the
infrastructure package and make it work by underwriting new
roading and services as new land is opened up. This reduces
the risk involved in land development. Local councils will
need to be encouraged to free up land through zoning changes
so that it can then be subdivided into affordable
New Conservative says let’s get some
practical solutions moving that actually help people, not
just throwing a wet sponge on a forest fire and talking
about it and trying to sound