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Housing crisis 'a victim of its own success'

Author
Frances Cook ,
Publish Date
Mon, 2 Mar 2015, 5:19AM
Photo / File
Photo / File

Housing crisis 'a victim of its own success'

Author
Frances Cook ,
Publish Date
Mon, 2 Mar 2015, 5:19AM

National's hoping voters will see the bright side of the housing crisis, saying they're a victim of their own success.

With fewer people able to stump up a housing deposit, rental prices are now also increasing.

Trade Me figures from January show the average weekly rent increasing nine percent on the previous year.

Housing Minister Nick Smith says it's a growing pain of a successful economy.

"You don't have house prices moving up and immigrants choosing to come to New Zealand when we're doing poorly," he said.

"What we have to do though is do more to grow the supply of housing and to improve the affordability."

Smith says there's no one answer, but one of their solutions is launching on April 1st.

"Putting in place the new Home Start scheme will help ninety thousand younger, modest income people, into their first home with grants of up to twenty thousand dollars."

 

 

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