Brooke van Velden
ACT Housing spokesperson
Grant Robertson’s meddling in the demand side of housing won’t build a single extra home.
Finance Minister Grant Robertson has agreed “in-principle” to give the Reserve Bank (RBNZ) debt-to-income (DTI) tools.
A 2017 paper written by Ian Harrison, an economist who has formerly worked at the Reserve Bank, the World Bank and the IMF demonstrated that a debt-to-income restriction fails a cost-benefit analysis. In other words, New Zealanders will be worse off as a result of the policy.
The only reason they’re being discussed is because Jacinda and Grant have lost control of the housing market and keep trying to blame anyone but themselves.
The Government can tinker with the rules all it wants – what it needs to do is actually build houses.
The Government’s has done enormous damage to property investors at the same time. We’ve seen the announcement on mortgage interest deductibility has not only failed to help first home buyers, it has scapegoated and vilified property investors.
The real problem is supply. ACT says the current generation of first home buyers do not need new taxes, but to build like the Boomers. We need major reform in infrastructure funding and planning, resource consenting, and building consents.
Without supply-side reform, the Government’s policy is just an attempt to choose who gets to miss out in a supply-constrained market. And the Government can’t even get that right.
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