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Mike Hosking: Megan Woods can't save Kiwibuild

Author
Mike Hosking,
Publish Date
Mon, 1 Jul 2019, 12:40PM
Megan Woods was appointed the Minister in charge of Kiwibuild in a Cabinet reshuffle last week. (Photo / File)

Mike Hosking: Megan Woods can't save Kiwibuild

Author
Mike Hosking,
Publish Date
Mon, 1 Jul 2019, 12:40PM

The fact Megan Woods, the new Housing Minister, has nothing to say on Kiwibuild for at least three weeks should worry us all. 

As a new Minister, especially Minister of the government's biggest cock up, you should be straight out of the blocks day one with your solutions. 

It's not like this mess is new, it's not like she hasn’t been able to observe it, ask a few questions, and formulate a few ideas. The fact she has gone to ground means what I suspected most of us have suspected all along, the idea is that bad, and it doesn’t matter who fronts a bad idea, it's still a bad idea. 

The problem, if you step back for just a minute, is there isn't actually a problem. Kiwibuild was a political answer to a political storm, not a real one. 

Currently there are more first home buyers in the market than ever. For the first time ever in May, first home buyers out-borrowed investors. Kiwibuild was designed allegedly to help the very people who are already in the market, get into the market. 

Further, the most obvious issue is price and this is the great shame of Kiwibuild, the houses for sale mainly haven't sold. Not only haven't they been able to build many homes, and certainly nothing near where they promised, but the majority of the completed projects are unsold. 271 built, 158 unsold. 

Why? Price. A bit in location, size, design, and area, but mainly price. 

If you have no money, never had any money, couldn’t raise a deposit and the bank won't touch you, Phil Twyford, now Megan Woods, coming along and painting a housing utopia doesn’t do a thing for you, when the bill is $650,000. 

They were going to give access to those "locked out of the market." It was never true. There is in fact no shortage of houses there never has been, for those who have the money. 

The only way a government can run a housing programme and get people into homes is to make them a price no one else can. 

And how do they do that? Buy a stake in it. Co-share, shared equity, and to a degree the new Twyford job of rolling through the Urban Development Authority will help if they can cut red tape, get councils out of the picture, and lower the price of land. 

But fundamentally what's been exposed here is that people who didn’t have a home, didn’t for simple reasons. They couldn’t afford one, and there is nothing new in that. 

This is the story of generations. Some people struggle to buy a house, and the government putting out press releases, making promises, and inventing buzzwords doesn’t build a house, and hasn’t built houses. The market as we've known it was never actually broken the way they made it out to be. 

So unless Woods is shouting everyone a house, nothing under her watch changes.   

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