“Leasing Could Be Key to Solving Home Affordability Challenge”
Leasing of Government land is one of several innovative ideas for helping people with disabilities achieve home
ownership proposed at the Owning a Home of Your Own Think Tank’s second meeting held in Hamilton on May 14th.
Home ownership is central to the health and stability of individuals, families, and communities. Levels of home
ownership in New Zealand are falling. In 2013 63% of New Zealanders owned their home compared to 76%in 1990 . Achieving
home ownership is particularly challenging for those on benefits, low incomes, and/or people living with disabilities.
Unemployment and low income levels experienced by people with disabilities can lead to poor living conditions.
The project aims to generate ideas for accessing home ownership as a key component of achieving good social outcomes for
people with disabilities who have a long term reliance on benefits.
The think tank is led by the Family Leadership Alliance alongside representatives from banking, insurance, and social
housing agencies. The Family Leadership Alliance consists of Parent to Parent, Standards and Monitoring Services (SAMS),
and Imagine Better, who all work with families in the disability sector.
The leasing proposal involves the government providing land at a fixed ground rent for a certain time period to
individuals and community housing providers, who would be responsible for constructing homes on the property. Leases
could be granted to a cross section of individuals and groups ensuring a wide demographic of residents. A leasing option
would reduce the capital expenses as land forms a significant part of the cost of a new home and reduce the amount
incurred through land development levies. The government could run the scheme as a social investment and would be
guaranteed long term income from the ground rent.
“The current requirement for mortgage applicants to have a minimum 20% deposit is an insurmountable barrier for many
people on low incomes or benefits,” says spokesperson Rebecca Walton “however they often are able to service regular
repayments or rent.” Shared ownership models and rent to own schemes could provide people on low incomes and
disabilities with a way into home ownership, bypassing the requirement for a substantial deposit.
The project’s next step is to formulate recommendations for relevant government ministers on changes needed to make
first time home ownership obtainable for people on low incomes. The think tank will also develop resources for first
time home buyers on using options currently available through services such as KiwiSaver.
Funding for the project is provided by Ministry of Social Development through their Think Differently Campaign, which
looks at creating social change through community action for disabled persons and their families.
ENDS