’Rapidly fading dream’

Press, 1 June 1977, Page 7

’Rapidly fading dream’

Home ownership for tens of thousands of young New Zealanders is “a rapidly fading dream.” the Opposition spokesman on housing (Mr W. A. Fraser) said. He said house construction costs this year had hit record levels. “In the first four months of 1977 the cost of the model house in the four main centres went up an appalling 8.5 per cent. On an annual basis this comes to 27.7 per cent. It’s the most dramatic price rise builders can recall.” Mr Fraser said that the Prime Minister’s claim that house prices had been held to 6.5 per cent was “quite misleading.” “It refers to the price of the average house sold in 1976. House prices in 1975 rose by only 5 per cent,” he said, “in 1976 costs went up 14.5 per cent. This means that the gap between Housing Corpor-

ation mortgages and prices, is at the highest level ever. Would-be new home owners are being driven into the hands of the finance companies and other money lenders, who often charge more than 20 per cent for second mortgages. By simply standing by, doing nothing, the i Government is allowing ' the situation to get worse. . "Every day of inaction ; means more people have I to take out second mort- i gages at exorbitant rates I of interest, on unsatisfac- | tory terms. Inevitably this i will mean more mortgage sales. “In other words, more New Zealanders will have their homes sold out from under them because this Government wasn’t prepared to face up to its responsibilities.” Mr Fraser said that the Minister of Housing (Mr Holland) must act to sort out the situation.