Balancing act for Govt over home affordability

A delicate balancing act faces the Government today, as it makes announcements on improving home affordability.

The tricky part for the Government is finding the balance between providing cheaper housing, but not at the price of poor quality.

Reducing regulation cuts the cost of building.

But relax the rules too much and there's a real risk of revisiting the leaky building scandal.

Encouraging more intensification of housing helps reduce urban sprawl.

However that can be hard to do, particularly in more affluent suburbs where residents have the resources to legally challenge such urban planning changes.

And the mayor of a city with a growing housing affordability problem is asking the Government to put its money where its mouth is.

Nelson Mayor Aldo Miccio says regulation changes won't actually make it any easier or cheaper.

He says central government wants councils to do more, but they need to give them the funding alongside those extra responsibilities.

Aldo Miccio says otherwise there'll be higher rates and more development contributions.

Photo: NZ Herald