15 August 2018
The Government is putting New Zealand’s housing market at risk through its KiwiBuild programme, National’s Housing
spokesperson Judith Collins says.
The REINZ report released today shows a decline in the national median house price since last month, and the Reserve
Bank Governor has indicated prices could fall.
“The housing market fluctuates all the time and the Government’s KiwiBuild programme will have to adjust if the housing
market falls further.
Housing Minister Phil Twyford’s own Cabinet paper states the Crown will take on any risk if the housing market
fluctuates up or down.
This is in addition to Kiwibank’s announcement they would accept 10 per cent deposits from first home buyers.
“Accepting low deposits puts young families buying their first home through KiwiBuild at risk.
“There will be no room to move if interest rates rise or if there is a change in property values.
“If the housing market falls, the 10 per cent deposit KiwiBuild buyers will have invested will be wiped out.
“Mr Twyford shows he still hasn’t thought about the risks of banks accepting low deposits by saying those are decisions
made between the prospective buyer and the bank.
“If anything goes south, buyers will be left on their own.
“Buying a house is not a one-off, done and dusted deal. First home buyers often choose a 30 year mortgage repayment
term, where in that time interest rates can fluctuate dramatically making it harder to re-negotiate their fixed home
“KiwiBuild is still lacking in detail on the massive risk the Government is putting first home buyers, the banks, the
Crown and New Zealand’s housing market in.”