4. PHIL HEATLEY (National—Whangarei) Link to this
to the Chairperson of the Commerce Committee
What progress has been made on the committee’s inquiry into housing affordability in New Zealand?
GERRY BROWNLEE (Chairperson of the Commerce Committee) Link to this
The committee has made good progress with this inquiry, having heard from 41 submitters between May and November, with another nine or more to be heard towards the end of this year and going into next year. There has been general acknowledgment amongst submitters that two main factors are influencing housing costs. The first is the escalating value of land, and the second is the cost and time spent working through the Resource Management Act and Building Act hurdles in order to build on that land. It further points to two main factors preventing young people from buying houses in such a costly environment—those are relatively low take-home pay and interest rates that are now the highest in the Western World.
Has the committee received any Government reports confirming the general observation of submitters that land costs and regulatory costs are driving up house prices?
The committee has received a report entitled Housing Supply in the Auckland Region 2000-2005. It was prepared for the Housing New Zealand Corporation and the Department of Building and Housing, and states: “A number of factors have constrained supply. One of these has been a limited supply of land. Another contributor has been difficulties in the consent process, especially its time consuming nature; … The RMA process”—the Government’s own report says—“needs to be revamped …”. However, I have not seen any Government reports stating the Government will address land supply issues, compliance, or consent costs, help get interest rates under control, or, for that matter, improve take-home pay for young New Zealanders.