Government To Review Housing Settings

Published: Tue 24 Nov 2020 02:50 PM
New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today.
“Our focus is on improving access to the housing market for first home buyers and ensuring house price growth does not distort the effectiveness of our overall economic rebuild – which we want focussed on the productive side of the economy.
“We have been clear about the policy responses that we are not prepared to consider, but there are other options that need to be investigated.
“Overly restrictive planning rules are one of the causes of high house prices and the replacement of the RMA is a priority to address that. We will build on the National Policy Statement on Urban Development and examine other potential barriers to affordable housing. Minister Woods is working on new and innovative ways to increase supply.
“I have also sought advice on further demand side measures that can add to the initiatives that we have already taken. I expect to receive that advice towards the end of the year, and will discuss it with Cabinet as soon as possible after that,” Grant Robertson said.
“Today I can also confirm that I have written to the Reserve Bank Governor to seek his advice on possible ways the Reserve Bank can support the Government to meet its economic objectives, in particular with relation to house prices. One proposal I am seeking advice from the Reserve Bank on is whether to include stability in house prices as a factor for consideration in the Remit when formulating monetary policy.
“With an extended period of low interest rates, and some time before housing supply can catch up with demand, now is the time to consider how the Reserve Bank may contribute to a stable housing market. Undertaking this work is not to suggest the Reserve Bank bears responsibility for house prices, but simply that it should have regard to something that is influenced by monetary policy.
“I want to be clear I am not proposing any changes to the mandate or the independence of the Reserve Bank.
“I want to acknowledge the Reserve Bank’s approach during COVID-19 has served New Zealand incredibly well. I continue to support its independence and mandate. It is critical that it takes, as the Remit asks it to, an approach that looks beyond the short term,” Grant Robertson said.
See attached a letter from Grant Robertson to the Governor of the RBNZ

Next in New Zealand politics

Reserve Bank To Take Account Of Housing In Decision Making
By: New Zealand Government
No new community cases of Covid-19 today - Chris Hipkins
Latest Release Of Child Poverty Statistics
By: Statistics New Zealand
New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now
By: The New Zealand Initiative
Kiwi MPs Among The “Most Educated In The World”
By: BlacklandPR
Government Eases Visa Restrictions For Visitors In New Zealand
By: New Zealand Government
RBNZ Supports Focus On Housing
By: The Reserve Bank of New Zealand
Reserve Bank Housing Direction Too Slow In Coming
By: New Zealand National Party
Robertson Adopts ACT Policy
By: ACT New Zealand
Government Action To Cool House Prices Still Needed Despite Reserve Bank Change
By: Green Party
No indication to change alert levels at this stage - Bloomfield
Second Batch Of Pfizer/BioNTech Doses Arrives Safely – As The First Vaccinations Take Place In The South Island
By: New Zealand Government
Two New Positive Community Cases –household Members Of Today’s Case
By: Ministry of Health
Corona Vaccine: Why Pharma Companies Should Not Make Billions Out Of Tax-funded Government Research
By: Creative Commons
Government Action Reduces Child Poverty
By: New Zealand Government
View as: DESKTOP | MOBILE © Scoop Media