HOUSING
June - July 2021
it is not clear how effective this will be in the long term in increasing supply. “We are skeptical about the bold assumptions made regarding house price inflation. There is no clear evidence that interest deductibility and bright-line changes will lead to such a dramatic reduction in house price inflation – especially since many of the details around these policy changes are yet to be finalised or announced. Despite these criticisms, Building Better’s Dr Bev James says the Budget announcement should be considered in the context of recent housing announcements: the re-setting of tax policy in relation to the rental market, changes in rules regarding rent increases, the Healthy Housing Standards, the infrastructure fund, and the progressive homeownership programme. These are all initiatives the Government have already set in motion to address
New Zealand’s housing issues. James says the boost for Māori housing is very much needed. The budget focus is on: • Increasing housing supply for Māori. • Improving house condition, performance and safety through housing repairs. • Enabling residential development through infrastructure development (ring fenced part of the Housing Acceleration Fund). “Those areas are supported by research in Affordable Housing for Generations, and the Building Better Homes Towns and Cities National Science Challenge. That research has highlighted Māori housing stress. “However, the research also shows, that for all housing, increasing housing supply is necessary but insufficient in itself to deal with housing stress. “Research shows that new builds need to be targeted
to affordable rental and purchase opportunities for low and modest income households. Therefore, price points of new builds need to be affordable to families and whānau. “A large body of research shows that there is significant exposure to poorly performing housing, and links poor housing to negative impacts on health and wellbeing. “The acceleration of new builds is clearly important. Our research shows that housing stress affects not just low-income households, but also modest income households, including in some regions, households with incomes above the regional household income median. “All housing new builds should be price pointed to ensure that there is housing affordable to those on different income levels within a region, not just to increase aggregate housing supply. The progressive homeownership
programme and investment into public housing recognises that. “Research shows that affordable housing is critical to ensuring that people are securely housed, and their housing enables them to make a home.” James adds that further work will still be needed on housing for seniors, particularly in the rental market. “Our research shows increasing numbers of people will reach retirement as renters or with mortgage debt. Evidence suggests attention will need to be given to the prevention of homeownership loss. Our research suggests senior homelessness is already an issue. She also says it is important that new builds provide fit-for-purpose housing over a lifetime. “Previous research shows that accessible and universal-design housing support independence, living standards and reduces housing-related costs.” propertyandbuild.com 37
