Sharechat Logo

PM hints at wriggle room on KiwiBuild target of 100,000 homes

Thursday 9th May 2019

Text too small?

Prime Minister Jacinda Ardern added further weight to speculation that the government is preparing to shift the goalposts on its KiwiBuild initiative to build 100,000 affordable homes within 10 years.

Speaking at the Just Transitions low-carbon economy summit in New Plymouth, Ardern pointed to evidence that first home buyers are returning to the housing market in greater numbers following a range of other government policies aimed at improving housing affordability.

"The market is fundamentally changing," she said. "When we came into office we stopped the sale of residential houses to foreign buyers. We closed tax loopholes. We know that had an impact. First home buyers now make up 24 percent of the market and it used to be 18 (percent), so things are changing."

She refused to be drawn on whether that meant the KiwiBuild target of building 100,000 affordable homes would be changed as the Cabinet awaits a KiwiBuild 'reset' package from Housing and Urban Development Minister, Phil Twyford.

Twyford has been giving mixed signals this week on how the policy might change, although he has said there are "no plans" to move the 100,000 target.

A string of problems with KiwiBuild has blunted its political impact, among them a slow start to new builds, lower than anticipated demand from new home buyers for KiwiBuild houses, doubts as to whether the ballot system currently being used is effective for allocating homes, the loss of the original unit's chief executive, and evidence that residential developments already underway are being counted as part of the initiative.

BusinessDesk understands that the ballot system will definitely be abandoned.

Ardern said the more favourable conditions for first home buyers "will be part of our thinking when Cabinet comes to make a decision on the KiwiBuild reset".

"Our goal is to get more first home buyers into the market, and it’s happening," she said.

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports