Auckland house prices have doubled under National. The Salvation Army says we have the worst homelessness in living memory. Housing is in a terrible state.
After nine years National still denies there is a housing crisis. The country needs a fresh approach.
Labour believes all Kiwis should have decent affordable housing. Our policies will take the first crucial steps to fixing the crisis.
To increase the supply of housing, we are going to build 100,000 affordable homes for sale to first home buyers. Under our Kiwibuild policy we will build townhouses and apartments in Auckland for under $500,000, and stand-alone homes for under $600,000, with prices significantly less outside Auckland.
We are going to set up an Affordable Housing Authority to cut through the red tape and lead major new development projects supported by transport infrastructure, parks and amenities, and a range of different types of housing and levels of affordability.
We are going to reform the planning system that creates an artificial scarcity of land driving up the price of land. We will free up the controls so our cities can make room for growth.
We will also increase the flow of funding for infrastructure, tapping into international bond finance packaged up for developments with the debt serviced by targeted rates on the properties in a new development.
This is important because under National a shortage of 60,000 homes has built up, and it is getting worse by 7000 a year, which is what has driven prices so high.
We will also crack down on property speculation. Labour will ban foreign buyers from buying existing homes just like they do in Australia.
Under our policy if you are not a citizen or permanent resident, the only way to buy real estate here will be to build a new home and add to the supply.
We are going to level the playing field for first home buyers by closing the loophole that allows property speculators to run a rental property at a loss and subsidise it by paying less tax.
We are also going to make someone who sells a rental property within five years pay income tax on the capital gain, no ifs, no buts.
We recognise migrants make a huge contribution to the country, but the level of net migration per capita is running at twice that of Australia and three times that of the UK. We are going to reduce the level of immigration by 20-30,000 a year to give Auckland a breather while infrastructure like housing and transport catches up.
By reining in the speculators and building affordable homes we will restore the great Kiwi dream of home ownership.
We are also going to re-write the rules for renting to make sure all rental properties are warm and dry, and encourage longer tenancies so families have more security and stability.
We are going to build more state houses instead of selling them off as National is doing.
National refuses to build affordable homes on the scale needed, and they refuse to take action on speculators.
Labour’s fresh approach aims to make the big changes that will ensure our children and grandchildren can enjoy the opportunities our parents took for granted.
For more detail on our housing policy: www.labour.org.nz/housing
Phil Twyford is Labour’s spokesperson on housing and the MP for Te Atatu.