Housing affordability measures won't work: Newland

The Government announced a host of measures last week in response to the Productivity Commission’s report on housing affordability, including working with councils to increase the supply of land and reduce delays in the consent process.

Newland said it would make little difference for buyers

"Perhaps your grandchildren may get some benefit, but for those looking for affordable home today the cupboard remains bare.”

He said land supply was just one part of the equation. Infrastructure such as roading, power and transport needed to be available to make any housing development work.

“The cost of house construction materials is still one of the greatest problems. Despite massive imports from China of cheap fittings and appliances (some of appalling quality) the cost of building materials remains stubbornly too high. It seems odd that in a country where timber, aluminium and steel are produced in massive quantities, the end cost for us is way over what the same materials cost overseas.”

Newland pointed to the GST charged on new builds as a factor adding to that problem

He said making land available would do little to counteract that, the low turnover in housing, the dearth of builders or the lack of competition in the construction market.