Choice of housing policies

Press, 20 November 1981, Page 13

Choice of housing policies

General election issues: HOUSING

By

BRONWEN JONES

National, Labour, and Social Credit housing spokesmen have all said that their party believes New Zealanders have a right to own their own homes; and that it is the duty of the Government to create the economic conditions conducive to home ownership. But the Minister of Housing (Mr Quigley) has added that if National is re-elected priority for State assistance will continue to be given to those who help themselves. It should not be expected that shelter be provided as of right. Under National, the Housing Corporation’s role has changed to provide firsthome mortgages for low income earners only. In addition, the thrust of the party’s policy is towards giving more choice between new and existing housing. National’s housing finance policy is:— A weekly income limit on people applying for Housing Corporation loans of $250, plus $lO for each child for new homes and for new and existing homes for single income families, and $2OO, plus $lO for each child, for dual income families buying existing houses. A weekly income limit on capitalisation of the Domestic Purposes Benefit of $225, plus $lO for each child after the

The Minister of Agriculture in a Labour or Social Credit government is going to be very busy carrying out the policies of his party. Labour has 42 sections in its policies on agriculture and rural rebuilding, and Social Credit 32. National in its two pamphlets on farming and horticulture tends to rely on the performance of the two industries over the period it has been in government and underlines a few salient policies that it would apply in the future if it is returned. It points to sheep numbers having risen from 55 million in 1975 to an estimated 71 million this year. A factor in this has no doubt been the livestock inventive scheme.

first. Up to $3OOO can be claimed for the deposit on a house.. Applicants for State loans must have a 20 per cent deposit when buying existing houses, and a 12.5 per cent deposit when building. State loans of $25,000. for new houses, and $18,500 for existing houses. Mortgage repayments to qualify for a tax rebate of up to $lOOO, or $19.23 a week for first home owners. Stamp duty no longer payable on houses costing up to $50,000. ’ Money saved in home owner- \ ship accounts to earn a tax rebate of 45 per cent, and from January 1 the minimum savings period to be reduced from three years to two years. .The maximum saving allowed would be increased from $2OOO to $3OOO. Some building societies are already allowed to operate these accounts, and from January 1 trading banks would also be allowed to offer home ownership accounts. State loans for building and improving housing in rural areas. Unlike National, Labour will lend according to the individual needs of home seekers, and the difference in regional housing costs will be recognised, says Mr M. K.

Some 930,000 hectares are being developed under the land development encouragement loan scheme, which when fully developed will carry another 4.5 million stock units or the equivalent of 1300 new sheep properties. And in spite of the mounting cost of land more than 11,000 farmers have bought, their first farm in the last five years, of which more than 6000 have received assistance from the Government. To maintain that momentum National intends to ensure that investment funds are available. It will also continue with productionbased incentives as the main thrust of its agricultural support policies and there is to

Moore, Labour’s shadow minister of housing. Labour’s housing policy is a 10-year programme:— An income-related State : mortgage system with interest rates and repayment periods adjusted annually so outgoings would be no more than one-fifth of a household’s 40-hour week income. Transferable State loans. People paying excessive interest rates and needing help would. be refinanced by the State; a special fund set up but jealously guarded and used only for the most urgent cases. Young people without a deposit but with the “technical ability” to renovate would-be financed into a home without a deposit in urban renewal areas. The state to provide loans where the home seeker pays only a portion of the interest and in return pledges a portion of the property’s equity when it is sold. State mortgages adjusted periodically to bring the average loan up to 80 per cent of the house and section cost. Home ownership account holders able to invest $4OOO, to be tax deductible. H.C. applicants with lower priorities offered loans through regular ballots. Handicapped people to get extended state loans, and houses bought and

tailored to individual needs. Greater emphasis on improvement loans, for family homes, and maintenance costs deferred for the elderly, the cost being repaid from their estates. People wishing to sell their house and buy a smaller unit would be eligible for a second state loan. Local authorities financially encouraged to buy more homes for modernisation

for resale to young families. Building Societies reviewed to ensure they operate as co-operatives. The scope of the Citizens Allocation Committee extended and the committee renamed the Home Assistance Committee. The Home Advisory Bureaux extended, and before any

eviction or any mortgage is called in family budgeting advice would be offered. The H.C. to provide a service to handle transfers, conveyancing, and mortgage documentation. Social Credit’s housing policy applies to ordinary and extended families, approved single parent and combined single parent famlies, and single men and women. There would be no fixed limit on loans, and restrictions would depend on the ability to meet repayments, says the party’s housing spokesman, Mr N. G. Morrison. Any proposition would be treated on its merits, and anyone wishing to build a more expensive house would be expected to put in a larger deposit. . Social Credit’s housing finance policy: Existing and new state loan interest rates to be reduced to three per cent within three years. The present policy of lending on existing properties to be continued. State loans for houses on leasehold land, and for raising houses to build flats underneath. For individuality in housing, the fees of an architect, quantity surveyor, or engineer, and a building consultant, can be included in state loans. Home ownership accounts to be inflation-proofed and

not taxed; the minimum term two years. The present mortgage rebate to be retained until interest rates drop to around 8 per cent. First homes would not incur the party’s higher level of tax. The present exemption from stamp duty of homes costing up to $50,000 retained. Home building in rural areas for rural workers to be encouraged. Interest-free loans for solar heaters, heat pumps, water tanks, reservoirs, and composting toilets. Rating on homes to be based on services rendered, and rates and maintenance up to $7OO to be tax deductible.

National would continue to ensure that enough State rental housing is available for those who cannot afford to or are unable to house themselves, Mr Quigley says. National’s policy is: Positive encouragement to tenants to buy homes provided through the Tenancy Saving Scheme and reduced deposit requirements. A six-year tenancy to prevent people staying in subsidised State housing for life regardless of income. The tenant’s, circumstances reviewed

after six years when she or he is expected to buy or is put on a 12-month tenancy. State rentals upgraded, for which $5 million has been set aside in the current Budget. Rentals reviewed annually and kept relatively low. 400 rental units to be bought this financial year. Labour also recognises the need to provide rental housing for those who cannot or do not want to own their own homes, and a Labour Government would build or buy additional homes and units in accordance with regional needs, Mr Moore says. Labour’s policy is: Many State rentals available for sale would be sold on a low-deposit home ownership scheme to those on the priority waiting list. The right to sell during the first five years would be negotiated through the Housing Corporation. Tenants with a satisfactory rent and maintenance record would be given a priority transfer to a unit they can buy and would be given a rebate towards the deposit. Tenants who do not maintain their properties would have their rents increased to pay for work done for them. Carports and garages would be built on request and rent charged accordingly. The present system of increasing rents where tenants take in boarders

would be abolished on a trial basis. A review of the H.C. rental formula reviewed and based on one sixth of a tenant’s income, discounting overtime. A leasehold option for State house tenants introduced. Income from State housing to stay within the H.C. Legislation covering landlords and tenants reviewed. Social Credit believes that inexpensive, quick solutions are needed to alleviate “chronic housing problems” faced by some families, particularly in Auckland, Mr Morrison says. Social Credit policy is: State houses which become vacant would be raised and flats built underneath. Some old State houses would be demolished and replaced with high density, low-cost flats, so no additional land and services would be needed. The present programme allowing tenants to buy State housing continued. Rentals regularly reviewed to keep them about one sixth of the net household income, with right of appeal to the Rent Appeal Board.

National’s housing policy has been designed for prospective home owners, and the days when the building industry was used as a

means of regulating the economy are gone, Mr Quigley says. However, National has given 'the industry special support with its $4OOO suspensory loan, a larger loan, and smaller deposit requirement for new houses. * There is a new demand for new ; houses, and with the economic growth planned for the 1980 s the industry has a bright future. It is not a time for major policy change, he adds. Labour and Social Credit plan to build more houses than National. In addition, Labour would review apprenticeship training and contracts, and introduce adult retraining schemes. The Housing Commission would be asked to survey existing housing to provide a sounder basis for needs and targets, Mr Moore says. Social Credit would not use the industry as a regulatory tool, and pledges steady growth. The party recognises more housing means more jobs, Mr Morrison says. Mr Quigley and Mr Moore

have shown that they are receptive to the idea of builder registration.

The three parties promise adequate pensioner housing, and both Labour and National talk of a scheme where pensioners are financed from family homes into smaller units, the cost being taken from their estates. Social Credit would help families provide granny flats for elderly parents. Labour has promised to see that buildings are permitted on maraes, and Social Credit has said it would repeal the part of the Town and Country Planning Act prohibiting residential building on maraes and Maori land near maraes. A land bank is proposed by Labour to produce reasonably priced sections for the public and small builders. Social Credit goes further, however, and says local authorities would buy all land near major urban areas to offer for tender or ballot, removing the speculator.

General election issues: FARMING V

Rental housing

Building industry

Other policies