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Shared Equity Scheme—Reports

Thursday 19 February 2009 Hansard source (external site)

Borrows9. CHESTER BORROWS (National—Whanganui) Link to this
to the Minister of Housing

What reports has he received regarding the shared equity home purchase pilot?

HeatleyHon PHIL HEATLEY (Minister of Housing) Link to this

I have seen reports on the shared equity pilot, which was a flagship Labour policy to address housing affordability. I have seen reports advising that, despite the promises that the pilot would see between 500 and 700 families helped under the scheme over 2 years, actually only 21 loans have helped 21 families in the first 7 months.

BorrowsChester Borrows Link to this

Has the Minister seen any reports on how the shared equity home purchase scheme was developed?

HeatleyHon PHIL HEATLEY Link to this

Yes. I have reviewed 12 announcements between 2004 and 2008 heralding the shared equity scheme. When the scheme was finally delivered many years later, in the pre-election environment, the market had changed, and as the paltry 21 loans clearly illustrate, the scheme was a case of too little, too late. National promised to keep the pilot. We will keep the pilot, but we do not hold much hope for it.

HawkinsHon George Hawkins Link to this

Why is the Government making it so hard for young Kiwis to get into new homes, when on the other hand its leader seems to be offering Fisher and Paykel Appliances shareholders the promise of extensive help?

HeatleyHon PHIL HEATLEY Link to this

The new Government is not making it harder for young Kiwis to get into new homes. In fact, that appears to be getting easier for them. But we are equally concerned about those who bought homes recently and are seeing their asset value being eroded.

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