Reserve Bank hits housing crisis ball back into National’s court

Comments by the Reserve Bank today that the Government should consider ‘further reducing the tax advantage of investing in residential housing’ highlight that the Government could be doing much more to fix the housing crisis, the Green Party said.

“John Key said earlier this week the Reserve Bank should ‘get on’ with fixing the housing crisis, but the Bank has put the spotlight back on the National Government’s inaction,” Green Party finance spokesperson Julie Anne Genter said.

“When the Reserve Bank says ‘a broad policy response is needed’ it’s pretty clear the Bank wants the Government to do more to help.

“National’s preference for leaving the housing crisis to the Reserve Bank to fix isn’t working, and the Government needs to take stronger action.

“National has completely failed to deal with runaway house prices. The Reserve Bank can only do so much to help clean up the mess.

“Tax advantages for property speculators have unbalanced our economy, leading to too much money being tied up in the housing market, instead of being available to invest in business expansion and job creation.

“We know that property investors are borrowing three times as much as first home buyers, so dampening housing speculation will create room for more families to buy their first homes.

“We need a proper capital gains tax (excluding the family home), a government-led home building programme, and better planning rules to encourage affordable housing around key transport routes,” said Ms Genter.

Latest Finance Announcements

Story

Report shows urgent need to fix wealth inequality

A new report out today provides all evidence the Government needs to start addressing runaway inequality and rebalance Aotearoa to work for everyone.
Read More

Story

It’s important to know your KiwiSaver history, Mr. Luxon

What the Government should now do is reverse the cuts the National Party Government made to KiwiSaver incentives, the Green Party says.
Read More

Story

Bold solutions needed to ease inflation pressures

Action is needed to address the inequality crisis and support New Zealanders on the lowest incomes, the Green Party says.
Read More

Story

Inquiry into COVID-19 economic response necessary

The Green Party is again calling on the Government to review the economic response to COVID-19, as the Reserve Bank of New Zealand puts up the Offi...
Read More

Story

Budget 2022: James Shaw Budget Speech

Mr Speaker, It has taken four-and-a-half years to even start to turn the legacy of inaction and neglect from the last time they were in Government ...
Read More

Story

Rising household costs hurting low-income people

The Green Party says the Government needs to do more for those on the lowest incomes as inflation outpaces wage and benefit increases.
Read More

Latest Building and Construction Announcements

Story

Let’s build better, warmer, and climate-friendly

The Government must take steps to ensure that the way we build our homes is helping to meet New Zealand’s climate change targets, the Green Party s...
Read More

Sustainable buildings and warm dry homes

Everyone has the right to a warm, dry home. Instead, housing in Aotearoa often makes us sick from damp and cold. In Aotearoa, much of our housing s...
Read More

Story

National would rather save landlords some cash than look after sick kids: Green Party

The National Party is more concerned about the back pocket of property investors than sick kids and the elderly, Green Party Co-leader Marama David...
Read More

Story

Stop charging homeless people for emergency housing

The Green Party is calling for the Government to stop sending homeless people into thousands of dollars of debt with the Ministry of Social Develop...
Read More

Story

Green Party: Building code out of date and won’t ensure warm, dry homes

In response to calls for a compulsory energy rating for buildings the Green Party is renewing calls for the building code to take better account of...
Read More

Story

Green Party calling for bold steps to tackle issues in Salvation Army report

The Green Party agrees with the Salvation Army that bold new steps are needed to stop a worrying trajectory of increased rent rises and homelessnes...
Read More