Home ownership cost almost doubles in five years

Press, 13 May 1988, Page 2

Home ownership cost almost doubles in five years

GLEN PERKINSON

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The cost of owning a home has risen almost 100 per cent in five years, the Opposition has claimed in an attack on the Government’s housing record. • In addition to “failing to deliver” on its housing policies, Labour was wasting valuable housing resources and rejecting apolitical advice on a vital social issue, according to the Opposition spokesman on housing, Mr Roger McClay. A newsletter prepared by Mr McClay attacks the Government’s record on housing policy, economic issues affecting housing, the Tenancy Bond Division, and housing costs. “People are still not being housed,” he said.

"Labour is failing to deliver in housing. The reasons the New Zealand housing market is seriously distorted are inflation, destruction of regional economies, and high interest rates.” House building was in a “slump” and the cost of owning a home had “soared” almost 100 per cent in five years. Using a Reserve Bank study Mr McClay showed the total housing cost to New Zealanders had risen 91.1 per cent since 1983.

The consumers price index figures for housing reflected a 69.3 per cent rise.

If the Government acted to reduce the rocketing cost of housing, annual inflation would have been fractionally more than 8 per cent instead of the present 9.6 per cent, Mr McClay said. Housing in New Zealand cost an average 6 per cent more than its five main trading partners, he calculated. Government economic policies wasted valuable housing resources. They attracted people to Auckland and Australia and away from the regions, leaving behind empty homes and putting pressure on stock in the main centres.

Mortgage rates were crippling home buyers. He blamed the administration’s economic direction.

He also criticised the Government for the demise of the independent National Housing Commission. A National Government would reinstate this quango, he said.

Without the commission, the Government was left with no independent advice based on in-depth inquiry and study and did not indicate the commission would be replaced. The need for that advice has never been greater, Mr McClay said.

By

David Fletcher