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More social houses for main urban centres

Author
Felix Marwick,
Publish Date
Wed, 15 Apr 2015, 3:00PM
(Paula Bennett - Photo: Getty Images)
(Paula Bennett - Photo: Getty Images)

More social houses for main urban centres

Author
Felix Marwick,
Publish Date
Wed, 15 Apr 2015, 3:00PM

UPDATED 6:38pm: The Government has released a breakdown of its purchasing intentions. 

Main urban centres are where the bulk of the planned 3000 social housing units will be built.

The release shows the Government's aim is to purchases around 1800 new social housing units for the wider Auckland region.

Social Housing Minister Paula Bennett points out the numbers are based on what the evidence is telling the via data held by MSD and Housing New Zealand.

"The estimates that the Ministry have done tell us that this is...what the need is."

The Social Housing Minister's pledging those in need will do better using the scheme in Auckland, despite projected higher rents.

Under the proposal social housing tenants in Auckland will pay more than other parts of the country. Rental for a single bedroom unit could be as much as $400 a week.

Bennett says the figure is based on the best advice she's had.

She points out 75 percent of the cost will be covered by the Government.

"(Social housing tenants) are paying 25 percent, so they are way better off getting...into a social house then they are being in the private rental market and relying on the accommodation supplement."

However, the Labour Party argue beneficiary users of social housing will be worse off under maximum rent thresholds being set by the Government.

Labour Leader Andrew Little says even with the 75 percent accommodation subsidy they're entitled to, those in Auckland will be worse off because, proportionally, more of their income will have to be spent on rent.

"You've got the beneficiary on a fixed income and, even though you've got a variable government contribution to your rental costs, the reality is it's still going to cost the benefit recipient a lot more in Auckland than it does in other areas, so your Auckland benefit recipient is going to be a lot worse off."

Bennett has announced Housing New Zealand is set to be the main provider of properties under the government's social housing policy.

"Housing New Zealand are the obvious one that will be providing these home and it gives them better information so they know where to do developments, where to build and what to sell and what to keep."

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