Something to come home to

Progressive leader Jim Anderton announced a policy to help low income families into housing today. An advertising campaign on the policy begins tomorrow.

"Under the Progressive housing initiative, families will be able to choose to capitalise family financial support to create the deposit for their own home," Jim Anderton said.

Increases in family financial support will reach their full level by April 2007. At this stage they will be high enough to enable low income families to create a deposit from 6 years of payments for the first child. Further detail is available in the policy statement attached.

"A home deposit is the biggest problem facing young families trying to get into their own home. This scheme will bridge the deposit gap for them.

"Young families need a secure home. Owning your own home gives families a secure place in their community and provides long term financial security. For young families it means their children can stay at the same school and develop friendships while parents can develop relationships with teachers. Stability is good for the children's health, education and wellbeing.

"The economic prosperity that we have achieved so far with the Labour Progressive government, means that we have the opportunity to give low and middle-income families a better chance of owning their own home. That's progressive in my book," Jim Anderton said.

The Progressive Party is also looking further options for home ownership including 'Rent to Buy' state housing, longer term mortgages, a Guaranteed Mortgage Insurance Scheme, similar to Kiwibank's current pilot, at the same time as increasing the supply of state houses.

Editors note

Capitalisation means that you collect future payments now, and forgo weekly support over the period indicated, e.g. capitalisation of family financial support over six years for a deposit on a house, means families will collect the value of those payments up front, and forgo weekly payments over the six year period of the scheme.

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