Shearer proposes Government scheme to build 100,000 “entry-level” houses over 10 years

on Monday 19 November 2012 in Affordability

Published 19 November 2012

Labour Party leader David Shearer trumped Friday’s Government announcement of 5-600 Auckland-affordable houses to be built at Hobsonville Point with a proposal yesterday for the Government to build 100,000 affordable houses over 10 years.

Mr Shearer said in his address to the party’s annual conference in Auckland: “We’ll oversee & invest in a largescale 10-year building programme of entry-level houses that Kiwis are crying out for. Yes, it’s a big commitment and it’ll take a couple of years to ramp up, but we can do it.”

“The start-up cost of the building programme will be financed through issuing government stock called home ownership bonds. The money we make from selling the houses will go back into the pot for building more.

“The houses will be compact in size. Some will be stand-alone dwellings and others apartments. All of them will be good quality & energy-efficient.

“The homes will be sold to first-homebuyers who’ve saved their own deposit, like with KiwiSaver.

We estimate that the maximum needed to be raised for a kick-start will be $1.5 billion.

“It will quickly become self-funding though. And because it’s a capital investment, it won’t affect our commitment to balance the books and return to surplus.

“I can already hear our opponents complaining that this is too bold. That the problem’s too big and there’s nothing we can do. I won’t accept that. I won’t give up on the Kiwi dream of an affordable home. I have spoken to Auckland mayor Len Brown to take up his offer of a partnership with Auckland Council to make land available. In addition, we will introduce a national policy statement under the Resource Management Act to ensure that planning rules & consenting decisions support affordable housing.”

Mr Shearer said a Labour government would also introduce a healthy homes guarantee “so landlords have to ensure every rental property is a healthy home that’s insulated and has efficient heating. It’s time for poor quality houses to be brought up to scratch with minimum standards.”

Related stories today:

$485,000 top price for 20% of Hobsonville Pt housing

Greens ridicule calling half-million-dollar homes affordable

Shearer proposes Government scheme to build 100,000 “entry-level” houses over 10 years

EDS chairman enthuses over Labour housing commitment

Earlier stories:

31 October 2012: 13,000 new homes/year? It’s an average

30 October 2012: Government ticks off answers to all Productivity Commission recommendations

30 October 2012: English suggests usurping council role, drill down and you find less aggressive management talk

29 October 2012: As English about to unveil Government response on affordability, industry presents some sharp answers

26 October 2012: Intensification, affordability & reality

25 July 2012: Council endorses scoping programme for strategic housing action plan