Opinion: Government's housing changes are underwhelming

Mon, 29 Oct 2012 3:36p.m.

The Government has imposed a six-month time limit on medium sized housing consents

Opinion by Political Editor Duncan Garner

The Government has announced it wants the Auckland Council to release more land to help developers build more housing.

It's the Government's answer to getting the cost of housing under control in the country's biggest and most expensive city - but it's stopped short of forcing the council to do anything.

In the other change, it will make sure all medium-sized consents, about 1600 of them a year, must be signed off within six months.

At the moment, most take about nine months on average but some can take three years or more.

Labour says this is just tinkering around the edges. I'd go further than that and say of today's changes, so bloody what? What's the big deal?

If you're a low income family today hoping to buy a house in the next couple of years I see nothing in here for you.

Head to Timaru and get a job - you'll have a better chance of buying a house there.

This will have a limited effect or no effect in the short-medium term. It may have some marginal impact long term - as Auckland's population grows by 1.2 million people over the next 30 years - but don't hold your breath. I doubt you'll notice anything.

There is nothing bold in here at all. It is tinkering while Auckland burns in the face of unsustainable house prices.

National does not believe in intervening in the economy and we've seen that again today.

The horse has bolted in Auckland and National's changes won't go anyway towards catching it. It has shied away from getting hands on or even getting its hands dirty.

It will not build and oversee new social and affordable housing projects in the city.

It's going to hold a market-level inquiry into affordability in the construction sector. Big deal.

It will not introduce a capital gains tax. Bold measures are missing.

At best it's a prod and a push to Len Brown to release land to build more low rise townhouse complexes and more suburbs. He may help - he may not.

Did the Government help him with his CBD rail tunnel pet-project? No is the answer. How willing will he be here? Remember he has his own plans too around housing and growth.

So don't get too excited about today's changes. They can barely be called that.

Bill English warned today that there are no quick fixes in Auckland. That's for sure. The Government hasn't even cracked a sweat producing today's "list" of changes.

I have one word for this: underwhelming.

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22/11/2012 4:07:09 p.m.

Alison wrote:

I recall watching TV news overseas one night and NZ featured on it -relaying the crazy high costs of buying houses in NZ at that time. While house prices have slowed, cities like Auckland have not. Auckland, as Garner says, is well off limits for the low income or even middle income earner -imagine the rates also on those properties. Fortunately interest rates are low now (I paid 18% in my day) but houses were cheaper. However the annual salary or wage does not match the high cost of buying homes and the reality is, these folk will struggle to save for their retirement, when it kicks in at maybe 68 years. It is vital for Govts to start developing the cheaper end of houses, or the kiwi own your home dream will be a distant memory. Years ago when the state housing sector was developed with imported Austrian builders, it moved quickly -the need was great even back then for rented places. Those houses are still solidly standing. If the Govt of that day could action and move quickly then, now with increased technology in the building trade, unemployed labour at hand, importation of OE builders (as with CHCH) it could move even quicker. Israel absorbed 2 million people at one time and built town after town to match that number of immigration. Maybe we should capture their expertise on how to speed things up and their bank account was not huge as those immigrants brought no $$$ into that nation. Maybe the 'big boys' are too busy counting the $$$$ more than getting the housing action really going. Also more $$ incentives and allowances offered to first home buyers (like The Netherlands has) to help them get into the real estate market and make ends meet as they pay off their mortgages. If people are so financially strapped to mortgages, there is no money over for retail therapy or anything else -so this affects all work sectors and spending. We still have spare land, we have the trees, great tradesmen, so NZ Govt dont slack and help fellow kiwis continue to own their homes and not be at the mercy of market rentals and the need to move a lot when owners sells.

3/11/2012 7:44:29 a.m.

jan.. wrote:

Get rid of the National Government of failures before anything start moving with such a request from Duncan Garner to sack John Key and his brain fade. All plans we have is for the New Labour Government and not the morons that caused damages and failures. Rethink and get out you fools.

31/10/2012 11:25:16 a.m.

klauss wrote:

The theory was to force investors to exit the property market and the values of properties would decline. Investors are less than 10%, but what do the majority of homeowners, renters, first home buyers? Do they build their own housing now? Interests are low but where comes the money to pay for low interests? As long as NZ build a super city and the rest is “sheep country” and industry moves offshore, who can risk a lifetime mortgage without job security?

30/10/2012 7:30:41 p.m.

Mike wrote:

@RJM wait and see?, lol we all know by experience nothing good will happen, it will be more of the same.

30/10/2012 1:12:45 p.m.

Klauss wrote:

“The market has failed in terms of housing” - no, the market did exactly react to it, when killing investors, who put money in to build? Who creates jobs for people in need? Growth based on immigration and imports to push a single city. Where is the infrastructure to grow the country? Smaller cities with housing and infrastructure are dying. Why not redirecting immigration, affordable housing for these areas?

30/10/2012 10:14:04 a.m.

MH wrote:

This underwhelming idea (as D.Garner put it) is about as bright a future as National can give the folks of New Zealannder. Thanks National, now councils will have another excuse to raise rates, to cover the costs of their responsibilities to new housing developments.

30/10/2012 8:42:06 a.m.

cato wrote:

All State houses should be sold to private enterprise. The funds raised and maintenance costs saved should then be used to give first home buyers a 95% mortgage at a realistic interest rate.
A further measure would be for Government to introduce a further tax on fuel- this revenue used to introduce a blanket insurance cover for all insurable items- cutting out greedy insurance companies who, after decades of relatively few major claims, are unable to meet the costs of insured parties in Christchurch. Where have all the profits gone over those years?
If the above were to be implemented then, over time, the majority would own their own house and thus gain security in an asset that would ensure a better standard of living throughout one's life.

30/10/2012 7:44:21 a.m.

Steve wrote:

So, yet another focus on increasing sprawl. What about the demand side? 40% of the population in Auckland was born overseas so it is a controllable area! Another 1.2 million in 30 years is a massive increase, of course part is natural but a big part is not. We seem to have given up trying to create companies and grow only by importing goods and people. What about a new construction SOE that only builds houses in existing areas? Even Bill English admits the market has failed in terms of housing.

29/10/2012 10:57:04 p.m.

Kathy wrote:

There are many other options that can be taken such as reigning in housing speculators who are also another major cause of inflated housing prices. The National Party could also try ending their executive coffee break that they started taking in 2008 and actually do some work. Lets face it they are failing on employment, failing on government sector reform with massive privacy breaches like the country has never seen before. Top level managers and politicians in this country are lazy and lacklustre compared to their counterparts in other countries like Japan or the U.K. In those countries if something goes wrong someone at the top takes responsibility as they should. The National Party are truely bad at scapegoating everyone else except themselves. I would like to know what Mike thinks National would have done in the sanlu affair since they pretty much have stuffed up everything they have touched since taking power. Perhaps they would have sent the GCSB into fonterra illegally?.

29/10/2012 6:19:02 p.m.

Darryl wrote:

Is the govt making it easier for poorer people to buy houses? Or are they just making it easier for investors to make more money?