Housing failures hurting businesses and workers

http://www.nzherald.co.nz/mood-of-the-boardroom-2016/news/article.cfm?c_id=1504161&objectid=11716804

Widespread unease about the Government’s handling of the housing crisis is a key theme of this year’s Mood of the Boardroom survey, the Green Party said today.

“Auckland’s broken housing market is creating a city where the tradies and salespeople who make our businesses tick can’t afford to buy their own home,” said Green Party Co-leader Metiria Turei.

“When business leaders are calling the Government ‘lazy’, ‘naïve’, ‘negligent’, ‘disingenuous’, and ‘far too hands-off’, then there’s agreement across the community that National has let the country down when it comes to housing.

“National’s failure to fix the housing crisis has created a situation where working Aucklanders on good incomes can’t afford to buy a home, while lower-paid people are forced to live in poor quality rentals and even garages and cars.

“70 percent of business leaders say the Government isn’t doing enough to fix the housing market and 39 percent are already having trouble attracting staff to live in Auckland because it’s unaffordable.

“The survey also has the productive sector saying we need a capital gains tax to shift investment from property speculation to growing jobs and exports. Unsurprisingly, real estate executives don’t want a capital gains tax.

“It’s good to see businesses supporting housing intensification along key transport routes, and it’s clear that many know that there’s more to fixing the housing crisis than just increasing supply.

“The Government has chosen not to take action to dampen demand with a capital gains tax (excluding the family home), stopping overseas investors from outbidding local home buyers, or closing the loopholes that encourage property speculation – that’s why the housing crisis just keeps getting worse,” Mrs Turei said.

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