Milestone Homes: Kiwi dream a pie in the sky?

Milestone Homes: Kiwi dream a pie in the sky?

Owning your own home is the great Kiwi dream. But for an increasing number of New Zealanders, it’s out of reach.

One of the country’s leading builders of affordable homes says housing companies are meeting the challenge with cost-effective plans. Now it’s up to others to do their bit.

David Wilson of Milestone Homes is urging banks to loosen strict lending criteria requiring borrowers to stump up a hefty 20 per cent deposit.

“Owning a home of your own is pie in the sky stuff for a growing number of New Zealanders,” Mr Wilson says. “Not because they can’t afford to service a mortgage, but because banks are demanding unfeasible deposits.

“It’s completely unrealistic. The cost of living, rising fuel prices, high rents… all these factors conspire to put raising a deposit out of reach of the average Kiwi, no matter how much they scrimp and save.”

Mr Wilson stresses Milestone Homes is not advocating irresponsible lending, merely a return to a middle ground to help people into homes.

Mortgage approval figures have hit a record low this year.

“We’ve seen banks go from being extremely liberal on lending to ultra conservative. Now we’re just asking them to get real,” says Mr Wilson.

His comments come as the building consent figures for July are published, falling again and underlining the glacial pace of recovery in the residential construction industry.

“We’re in the business of building affordable homes. Buying your first home is a big step – a milestone in fact – so we do everything we can to make it easier to reach.

“Banks can support that, too, by responsible lending with realistic criteria, to help more New Zealanders realise their home ownership dream.”

ENDS

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