11. LYNNE PILLAY (Labour—Waitakere) Link to this
to the Minister of Housing
What assistance is the Government providing Kiwi families to buy their first home?
Hon CHRIS CARTER (Minister of Housing) Link to this
As of 12 August, 2,930 families have used the Welcome Home Loan scheme to buy their first home. Over 1,000 of these loans have been settled since the Government enhanced the scheme last September. Families living in every region of the country have bought homes with a Welcome Home Loan this year, proving it is still possible for households on modest incomes to buy a home with a mortgage of up to $280,000—although obviously most loans have been in lower-priced housing markets.
Yes, I have seen a suggestion from John Key that State house tenants should be able to buy their own home. I am advised that the average net assessable income of State house tenants is $303.75 per week, which is an income of $15,795 per year and enough for a maximum affordable mortgage of only $53,000. This is a long way off the average value of a State house in our three major cities of between $204,000 and $289,000. Mr Key’s promise is a hollow promise. There is no way that Sate house tenants could afford to buy their own homes, and it is a cruel hoax to pretend otherwise. Tell the truth, Mr Key!
Madam SPEAKERI tell Ministers that when responding to questions those comments are not appropriate and are outside the Standing Orders. If Ministers continue to follow that practice they will not have an opportunity to answer the questions.
Phil HeatleyCan the Minister confirm that 6,000 State house tenants currently pay market rents—exactly the same rent as their neighbours—and that if those neighbours have dreams of homeownership, perhaps those 6,000 State house tenants also have dreams of homeownership; and why does the Minister not support State house tenants owning their own home, or does he not like the idea of State house tenants becoming independent of his Government?
I can confirm that just 9 percent of State house tenants pay a market rent, and many of these tenants—
Please be seated. We are not going to get through question time with this level of disorder. Will the Minister please answer the question in silence and do so briefly, to the point, and within the Standing Orders.
I can confirm that just 9 percent of State house tenants pay market rents. Many of these tenants are located in small provincial centres, where the average rent—not the average price of a house—is very low. What I can confirm is that the Government is providing opportunities for New Zealanders to buy their own homes. We are not interested in issuing hollow promises that are simply not true.