Property

Budget 2016: what it has to say on property

Speculation about Budgetary housing initiatives turns out to be premature as the Budget allots little in the way of property related spending.

Thursday, May 26th 2016

Finance Minister Bill English

Finance Minister Bill English delivered his eighth Budget this afternoon and, despite much anticipation in the face of Auckland’s supply shortage, there were no surprises when it came to property.

Here’s a summary of Budget 2016’s property and housing related funding:

• A further $100 million is provided to free up surplus Crown land for housing developments in Auckland.
• $36 million to ensure more families live in warmer, drier and healthier homes.
• $200 million for at least 750 more places for individuals and families with the most pressing housing needs, as well as meeting the costs of rising rents.
• $42 million will support 3,000 emergency housing places a year and establish a new emergency housing Special Needs Grant.

Given growing concern about Auckland’s supply shortage, perhaps the biggest announcement was the funding boost for the government’s surplus Crown land programme.

English said that the new funding is intended to free up more land and increase housing supply in Auckland.

It follows the $52 million set aside in last year’s Budget, which has led to agreements for 20 parcels of land.

“The government’s longstanding view is that obstacles to the supply of land and housing are the main issues facing the housing market. It is essential these obstacles are removed.”

For this reason, English confirmed the government will soon be issuing a National Policy Statement on Urban Development.

“This will direct councils to allow more housing development where necessary and to measure the impact of their decisions on house prices.”

Another area of public concern recently has been the quality of the housing available.

The Budget’s allotment of $36 million for warmer, drier and healthier homes is intended to address this issue.

English said that, of the total, $20 million will go to insulating around 20,000 rental homes occupied by low-income families.

The other $18 million will be delivered through the health system and will on reducing preventable illnesses among young children who are living in cold, damp and unhealthy homes.

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