Yesterday we covered National’s blunder in not considering Treaty settlement obligations in its plans to free up state land for Auckland housing. Today you can read someone who actually knows what they’re talking about on the issue, check out Professor Geddis’ piece at Pundit.
The problems for National’s housing plans for keep coming, with Ngati Whatua pointing out that it has first call on the land to be “freed up” under treaty agreements.
A marked drop in mortgagee sales recently. Good news?
Rob had a couple of great posts on National & Housing yesterday, as they are all over the place on it. Still trying to point the finger at Helen Clark because average house prices in Auckland rose $219,000 in the 9 years of the last Labour government; but it’s no longer crisis after a further $313,000 rise in 7 years of National.
National’s policy opens the door to more effective capital gains tax, thus irritating investors and their base, while probably not achieving anything in practice. The worst of both worlds. Bonus question – does this policy effectively underwrite losses when the property bubble bursts? Plus another bonus John Key lie!
National appears to be doing an about face on a Capital Gains Tax for housing.
Why is it left to the Reserve Bank to try and tackle the property bubble? It’s true – this government is recklessly complacent.
ACT’s David Seymour is acting all surprised about the damaging consequences of right-wing policies. It’s like he’s seeing the world for the first time.
If National were serious about their “social housing” spin they would place restrictions on the use and resale of these houses. Without such protections its just another privatisation of public assets.
Auckland house prices have exploded again. Houses get more capital gains than their inhabitants do in salaries. So what is the government doing about it? Nothing. They haven’t tried the economic basics.. Capital gains tax to decrease demand, or a building programme to increase supply. Meanwhile National’s landlord MPs laughing all the way to the bank…
If the latest ad running in Malaysia and Singapore is anything to go by we can expect more fuel to the Auckland property price flames. “How would you like people in New Zealand, to give you around half their weekly wages?”…
This week the Reserve Bank recommended adopting the Labour / Green capital gains tax, the National party denied and dithered, and Don Brash explained the truth about the property bubble.
(Image credit Foxy.)
For those who are wondering how National’s “social housing” policy is going to work in practice, The Herald today has a piece that gives a pretty fair idea.
Details of a public meeting hosted by the West Auckland Labour MPs about housing issues to be held tomorrow night.
Where does this leave National’s “social housing” sell-off?
Last night in Parliament National voted down Harawira / Turei’s Feed the Kids Bill, David Shearer’s Food in Schools Bill, and Phil Twyford’s Healthy Homes Guarantee Bill.
Are you saving to buy a house? Are you saving more than $1000 a week? If not, you are going backwards.
That may be what it takes to interest charities in becoming “social housing” providers.
This morning the Salvation Army released their state of the nation report – A Mountain All Can Climb. It is mixed news, and most coverage has focused on the impact of the housing crisis.
The Salvation Army has all but ruled out being involved in the Government’s Social Housing unless it is provided with capital. And if divestment occurs it considers that tenants should have a role in governance of the houses they live in.
We are in the process of locking in inequality through the intergenerational ownership of housing, thus squeezing more and more mobility out of society.
“The Government’s continuing attempts to divest itself of state housing overlook the enormous benefits to society which these homes produce in alleviating severe housing shortages. They were built up by successive generations of New Zealanders, and to “sell them off” under the pretence of efficiency is a disservice to all of us, whether we’re homeowners or renters.”
Key’s state house asset sale policy doesn’t make sense at any level, and the questions are piling up…
John Key’s housing announcement contained very little new information. Work has been put in for the past couple of years in developing the policy. The net effect will be that the Government will have more money for other capital projects not related to emergency housing. It will keep its fingers crossed that charities can pick up the slack. And the risk is that not one new house will be constructed at a time of intense need.
The choice is clear.
Rob Salmond at Polity on Key – “Is he deluded, or is he being deliberately misleading?”…
Nick Smith has given his housing speech and blamed Auckland’s housing crisis on the RMA. A Treasury commissioned report, based on discussions with developers, has put dollar figures on what the RMA is allegedly costing. The logic of the analysis is that by reducing urban design standards we will make housing more affordable. Updated with link to Rob Salmond Polity post.
Nick Smith today announced proposed changes to the Resource Management Act. It is likely he will resuscitate the reforms that were stalled after Peter Dunne refused to support them last year. ACT’s David Seymour has said he will support the changes even though he did not know what they are. Treasury are to release a paper with proposals for change. Updated lprent – yep National stupidity reprised.
Yesterday it was announced that Auckland is the ninth least affordable city in the world requiring 8.3 times their average wage to buy a home. Reducing regulation hasn’t worked, otherwise more than 20 homes would have been built under the 2013 fast track accord. The problem is a shortage of affordable housing.
A new report shows that Steven Joyce’s MBIE fiefdom is failing miserably. Meanwhile the MBIE is under fire for the major cost blow out of the Sky City Casino deal – another deal with Joyce’s imprints all over it.
The government has failed to tackle NZ’s on-going housing crisis. Fuel/energy poverty is increasing, with a higher proportion of households unable to afford any heating. More Kiwis are renting than in the 2006 census, & more Aucklanders live in over-crowded households.
On RNZ this morning PSA National Secretary Richard Wagstaff criticised Bill English for his misleading rhetoric about rises in “average wages”. NZ’s income and wealth gaps have increased in recent decades. The lowest income remain low; the top earners get big salary increases.
A last-minute, urgent appeal from Phil Twyford – oppose the sell off of state houses – today!
The second annual Child Poverty Monitor was released today. bsprout on Local Bodies on poverty and inequalities in Invercargill, “provides a good snapshot of New Zealand society”.
Kevin Hague says, the government’s plan to replace state housing with “social housing” will make the affordable housing crisis worse & is “economically reckless”. The Labour Party have circulated a petition to save state houses from being sold by the NZ government.
Hamilton City Council currently has plans to sell of its remaining pensioner housing stock. It already sold off a block of them in 2012. Of those sold, only 12 out of 53 units are available for seniors to rent at affordable rates. This is because 27 were sold as there was no social service provider able to buy them. So now Council want to sell the rest.
