Call for housing change

Press, 26 February 1980, Page 2

Call for housing change

I PA Wellington I The Labour Party’s shadlow Minister of Housing (Mr Colman) yesterday urged the 'Government to do something [immediately to help home(seekers buy their own [houses. I In spite of what he described as the present appalling economic conditions, the (Government could still in? troduce policies to enable people to get their own homes, he asid. Mr Colman said that a year ago the Minister of Housing (Mr Quigley) had announced a housing package aimed at improving con[ditions, but this had failed [to achieve anything constructive.

I The biggest single factor (depressing the housing industry was the continued escalation in the cost of borrowing money while real incomes of home-seekers dropped. Mr Colman said there had been a record number of forced home sales which could be expected to exceed 1000 this year unless the Government acted. The loss in building industry jobs and skilled labour had also been a record. There had been a record escalation in the deposit gap between the cost of a home and the first mortgage available, now equivalent to , between $lO,OOO and $13,000. Record home mortgage repavments had arisen largely from record interest, rates, he said. A recent master builders’ survey showed . that only about 180 of the more than 1500 people seeking ■ new homes each month were able to qualify because of finance difficulties. Home-seekers paid between $35,000 and $40,000 for virtually the same 90 to 99 sq m house on a 20 to 25 perch section that they couid have built for $23,000 to $24,000 in April, 1975. Mr Colman said that a move back to one mortgage for one house to break the high-cost multiple mortgage spiral was urgently needed.