Number of houses built ‘lowest for 30 years’

Press, 4 October 1984, Page 14

Number of houses built ‘lowest for 30 years’

By

OLIVER RIDDELL

in Wellington

The 14,100 new houses and flats built in the 1983-84 year represented the lowest level of dwelling completions for more than 30 years, according to the Minister of Housing, Mr Goff.

He tabled the annual report of the Housing Corporation in Parliament on Friday.

The former National Government’s approach to the housing industry and economic management had been “incredibly damaging” to housing. The rapid increase in the number of building permits issued in 1983-84 “exposes the cynical efforts of the former National Government to create boom conditions in the building industry to coincide with the 1984 election,” Mr Goff said.

This attempt to foster a climate of false prosperity had inevitably put pressure on house prices and the building industry. Reports of shortages in developed building sites and building materials had already begun to appear early in 1984, he said. One of the consequences of the “false boom condi-

tions” had been the rapid growth of the deposit gap which young home-seekers faced as house prices raced ahead of falling real incomes which were being pegged down by the wages freeze.

Last year 496 new rental units were built, Mr Goff said, compared with 328 and 264 in the previous two years.

Taken together, these three years represented the lowest level of State house construction for any threeyear period in the entire 47year history of the State housing programme. Also more State houses were sold off in the same three years than at any time in the last 30 years, he said. Total State rental stock had fallen almost 3000 units since 1981.

The report showed that the Housing Corporation administered 185,575 loans worth $2501 million and 23,000 loans were approved

during the year worth $342 million.

A total of 9888 homeacquisition loans had been approved — 3551 for new houses and 6337 for existing dwellings.

Authorised suspensory loans for building totalled $11.52 million for 2299 new houses financed through the private sector. Interest concessions were given to 1181 modest income borrowers acquiring their first home. Low start repayments were taken up by 1607 borrowers.

Grants and subsidies were given to 6922 holders of Home Ownership Accounts, while 5363 supplemented mortgage loans were given to holders. There were 2660 Home Improvement Loans approved.

The report said 401 new rental and owner-occupier flats for the elderly were approved.