Who benefits and what doesn't work? Economists on the Govt's housing package

Author
Newstalk ZB,
Publish Date
Tue, 23 Mar 2021, 9:07PM
(Photo / Supplied)
(Photo / Supplied)

Who benefits and what doesn't work? Economists on the Govt's housing package

Author
Newstalk ZB,
Publish Date
Tue, 23 Mar 2021, 9:07PM

The Government's plan to tackle the housing market has got a mixed reaction from economists. 

The plan includes an almost four billion dollar acceleration fund, and doubling the bright line test for most people from five to ten years - slapping a tax on any property gains sold within that time period.

Finance Minister Grant Robertson's stressing the test won't apply to the family home.

The package will also lift the ceiling for income and regional house price caps - and close an interest deductibility loophole for future investors.

ANZ chief economist Sharon Zollner and KiwiBank chief economist Jarrod Kerr joined Heather du Plessis-Allan to discuss the announcement, including what it means for first home buyers and investors, why it's just a "drop in a leaky bucket", and what else needs to be done to improve the market.

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