Would-be home-owners suffer another blow

Press, 2 November 1983, Page 6

Would-be home-owners suffer another blow

PA ’ Wellington The hopes of homeseekers had been dashed again in less than three months with the Housing Corporation’s latest announcement said the Labour spokesman on housing, Mr P. B. Goff, yesterday. The stopping of lending for existing houses and the cutting of eligibility for all low income married couples ; who, have not yet started families came on top ; of three earlier announced restrictions, said Mr Goff. These were the exclusion of under 25-year-olds from eligibility, the exclusion of those who could not meet hew 30 per cent of income loan repayment, guidelines, and the exclusion of those who were unable to obtain second mortgages at, interest rates of 14 per cent

or less. “That is five major cuts in Housing Corporation lending since the Budget and before the estimates of expenditure have been debated in Parliament,” he said. Mr Goff also said the Government was making lending criteria tighter and tighter. “Now it is low-income married couples, putting off having -a family until they have a roof over their heads that have fallen under the Minister’s,axe. “These latest cuts expose the total inadequacy of amounts budgeted for Housing Corporation lending. This year’s budget was already $4l million less than the amount set aside only two years ago.”

The latest restrictions have come as no surprise to

the president of the Canterbury Master Builders’ Association, Mr Bill Harrison. Mr Harrison said last evening that when the previous restrictions were announced he had suggested that the Minister of Housing would adjust the lending criteria once a month to stay within his budget because of the upturn in building. “He said as long ago as August at the housing conference of the Master Builders’ Association in Wellington that he had a budget that he intended to stick with and as the demand increased he would adjust to stay within it,” said Mr Harrison. “The Housing Corporation is, in > fact, withdrawing from the money-lending

business. The Government is encouraging people to go to home ownership accounts which are very good for the purpose. We have to encourage people to plan and have a home ownership account,” he said. The president of the Can-terbury-Westland branch of the Real Estate Institute, Mr J. N. Grant, was not available for comment last evening. Sources in the real estate business in Christchurch said that the policy change would come as a real blow to young couples. “There is no way that some of them are going to be able to afford a new home, and if they can, all they will get is a bare house on a bit of land,” said one agent. Details, page 2